DEERFIELD, Ill.--(BUSINESS WIRE)--
Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading
home and security products company, today announced it has signed an
agreement to sell Simonton Windows to Ply Gem Holdings, Inc., a leading
manufacturer of exterior building products in North America.
The Simonton transaction is valued at approximately $130 million, or
roughly 10 times 2014 EBITDA. The transaction's closing is subject to
regulatory approval and is expected to occur in October. The
Simonton sale is expected to reduce Fortune Brands' second half 2014
earnings per share from continuing operations by 2 to 4 cents.
"Simonton's strength in the replace and remodel segment of the market
combined with Ply Gem's strength in new construction are a natural
combination," said Chris Klein, chief executive officer, Fortune Brands.
"Together the companies can now offer a more comprehensive product
portfolio, benefit from an expanded distribution network and have a more
efficient national manufacturing platform. We also believe the sale of
Simonton will allow us to more sharply focus on our Therma-Tru entry
door and Fypon trim business and position us to further increase
operating results in 2015."
Fortune Brands remains committed to owning and growing its door segment
with its industry-leading Therma-Tru entry door business which is
focused on the growing fiberglass segment within the entry door
category. The Company expects Therma-Tru will continue to drive
profitable growth with its product innovation, total door system
approach and strong distribution network.
About Fortune Brands
Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in
Deerfield, Ill., creates products and services that help fulfill the
dreams of homeowners and help people feel more secure. The Company's
trusted brands include Master Lock and Sentry Safe security products,
MasterBrand cabinets, Moen faucets and Therma-Tru entry door systems.
Fortune Brands holds market leadership positions in all of its segments.
Fortune Brands is part of the S&P MidCap 400 Index. For more
information, please visit www.FBHS.com.
Cautionary Statement Concerning Forward-Looking
Statements
This release contains certain "forward-looking statements" regarding
future financial performance and the effects of the Simonton Windows
divestiture. Where, in any forward-looking statement, we express an
expectation or belief as to future results or events, such expectation
or belief is based on the current plans and expectations of our
management. Although we believe that these statements are based on
reasonable assumptions, they are subject to numerous factors, risks and
uncertainties that could cause actual outcomes and results to be
materially different from those indicated in such statements including
the factors discussed in Item 1A of the Fortune Brands Home & Security,
Inc. Annual Report on Form 10-K for the year ended December 31, 2013,
filed with the Securities and Exchange Commission. In addition, this
release contains forward-looking statements that involve risks and
uncertainties associated with the sale of Simonton Windows. These
include: the satisfaction of closing conditions for the transaction,
market conditions and the impact of any failure to complete the
transaction. The forward-looking statements included in this release are
made as of the date hereof, and except as required by law, we undertake
no obligation to update, amend or clarify any forward-looking statements
to reflect events, new information or circumstances occurring after the
date hereof.
Fortune Brands Home & Security, Inc.
Investor and Media Contact:
Brian
Lantz, 847-484-4574
brian.lantz@FBHS.com
Source: Fortune Brands Home & Security, Inc.
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