Fortune Brands Completes Acquisition of LARSON as Part of Outdoors & Security Segment

Rhea-AI Summary

Fortune Brands Home & Security (NYSE: FBHS) has successfully acquired LARSON Manufacturing, the leading North American brand of storm, screen, and security doors, for approximately $660 million. This acquisition, completed using cash and borrowings, adds LARSON's $390 million revenue portfolio to Fortune Brands' Outdoors & Security segment. LARSON, based in Brookings, SD, boasts 1,200 associates and multiple manufacturing locations across the U.S. The existing management and workforce will remain intact post-acquisition.

Positive

• Acquisition value of $660 million expected to bolster revenue with LARSON's $390 million in sales.
• Integration of LARSON enhances Fortune Brands' market position in the Outdoors & Security segment.
• Retention of LARSON's management team and associates supports operational continuity.

Negative

• None.

Fortune Brands Home & Security, Inc. (NYSE: FBHS, the “Company”, or “Fortune Brands”), an industry-leading home and security products company, today announced it completed the acquisition of LARSON Manufacturing (“LARSON”), the North American market leading brand of storm, screen and security doors. LARSON is now part of Fortune Brands’ Outdoors & Security segment.

The Company completed the acquisition for a price, net of tax benefits, of approximately $660 million, which was funded with cash on hand and borrowings under its revolving credit facility. With revenues of approximately $390 million, LARSON has approximately 1,200 associates and is headquartered in Brookings, South Dakota, with manufacturing operations in Brookings, South Dakota, Lake Mills, Iowa, Mocksville, North Carolina and Senatobia, Mississippi, in addition to central distribution centers in Albert Lea, Minnesota and Mocksville, North Carolina. The Company expects that the LARSON management team, associates and locations will remain in place.

About Fortune Brands

Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in Deerfield, IL., creates products and services that fulfill the dreams of home. The Company's operating segments are Plumbing, Cabinets and Outdoors & Security. Its trusted brands include Moen, Riobel, Perrin & Rowe, Shaws, Victoria + Albert and Rohl under the Global Plumbing Group (GPG); more than a dozen core brands under MasterBrand Cabinets; Therma-Tru entry door systems, LARSON storm, screen and security doors, Fiberon composite decking and Master Lock and SentrySafe security products in the Outdoors & Security segment. Fortune Brands holds market leadership positions in all of its segments. Fortune Brands is part of the S&P 500 Index and a Fortune 500 Company. For more information, please visit www.FBHS.com. To learn more about how Fortune Brands is embracing and accelerating its environmental, social and governance duties, please visit the Company’s ESG section and report at www.FBHS.com/global-citizenship.

Source: Fortune Brands Home & Security, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201214005780/en/

FAQ

What is the purpose of Fortune Brands' acquisition of LARSON?

The acquisition aims to strengthen Fortune Brands' position in the Outdoors & Security segment by adding LARSON's leading portfolio of storm, screen, and security doors.

What is the value of the LARSON acquisition by Fortune Brands?

Fortune Brands completed the acquisition of LARSON for approximately $660 million.

How much revenue does LARSON generate?

LARSON has an estimated revenue of approximately $390 million.

Where are LARSON's manufacturing facilities located?

LARSON operates manufacturing facilities in Brookings, SD; Lake Mills, IA; Mocksville, NC; and Senatobia, MS.

What impact will the acquisition have on Fortune Brands?

The acquisition is expected to enhance revenue and market share in the home and security products sector for Fortune Brands.