DEERFIELD, Ill.--(BUSINESS WIRE)--
Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading
home and security products company, today announced the creation of a
new Global Plumbing Group (GPG), a strategic first step to accelerate
growth opportunities and transform its plumbing business. Fortune Brands
has completed its first acquisition under the GPG, Riobel, and has also
signed an agreement to acquire ROHL and its brands.
"The creation of the GPG platform provides the foundation to accelerate
growth in our plumbing segment, providing the critical infrastructure to
support a multi-brand, -channel and -geography plumbing business," said
Chris Klein, chief executive officer, Fortune Brands. "Most importantly,
the GPG platform enhances the potential for future growth opportunities
as we look to grow plumbing sales to $2.5 billion by 2020."
The GPG platform will support the growth of multiple plumbing brands
simultaneously with an enhanced set of products and brands while
leveraging the Company's global supply chain and broad distribution
network. It paves the way for the addition of acquisitions, joint
ventures, supply agreements and distribution agreements, and allows for
seamless integration of new products and brands. It also accelerates
synergistic growth opportunities and initiatives across the Company's
plumbing business.
Nicholas Fink has been named as president of the GPG. He joined Fortune
Brands in 2015 from Beam Suntory where he was the president of Asia
Pacific and South America, leading eight operating units in 45 markets
while growing market share and integrating businesses. He brings an
established track record as a results-oriented leader with strengths in
international markets, industry-leading consumer brands and successful
M&A transactions. Fink has been leading Fortune Brands' Global Growth &
Development team since joining the Company.
As a first step towards future growth and expansion, Fortune Brands
recently acquired Riobel, a Canadian premium showroom brand. Riobel has
the potential for significant profitable growth with approximately $40
million in annual sales, and brings innovation and best-in-class
customer service.
Today the Company also signed an agreement to acquire ROHL, a
California-based luxury brand, which includes the ROHL and Perrin & Rowe
brands, as well as a successful collection with California-based
designer Michael Berman. ROHL has the potential for significant
profitable growth with around $70 million in annual sales, and brings a
design-centric, artisanal approach to its luxury products. The
transaction is expected to close in the third quarter.
"Since our founding in 1983, our family has focused on building a
successful business grounded in quality, style and strong partnerships,"
said Lou Rohl, president, ROHL. "We are excited to join the Fortune
Brands family of companies and enter a new chapter of our growth that
will allow us to capture even greater opportunities ahead."
Riobel, ROHL and Perrin & Rowe mark the opportunity to broaden the
portfolio offering beyond the GPG's number-one positioned Moen brand.
The brands will retain their own brand identities, teams, locations and
partners, and other elements of the businesses that have made them
successful.
"With the new GPG structure now in place, this is a great time to
welcome Riobel, ROHL and Perrin & Rowe into our plumbing business.
Today, we have tremendous opportunities to transform our business, enter
new markets, develop new products, manage our channels and customers in
more holistic ways and optimize a portfolio of brands as we grow at a
faster pace," said Klein. "The GPG platform, strategic acquisitions and
joint ventures reflect our continued focus on growing the business. We
continue to look at other growth opportunities for the GPG and hope to
execute additional transactions as part of our strategy to drive
incremental growth."
About Fortune Brands
Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in
Deerfield, Ill., creates products and services that fulfill the dreams
of homeowners and help people feel more secure. The Company's four
operating segments are cabinets, plumbing, doors and security. Its
trusted brands include more than a dozen core brands under MasterBrand
Cabinets; Moen and Riobel under the Global Plumbing Group (GPG);
Therma-Tru entry door systems; and Master Lock and SentrySafe security
products under The Master Lock Company. Fortune Brands holds market
leadership positions in all of its segments. Fortune Brands is part of
the S&P 500 Index. For more information, please visit www.FBHS.com.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING
STATEMENTS
This press release contains certain "forward-looking statements"
regarding business strategies, market potential, future financial
performance and other matters. Statements preceded by, followed by or
that otherwise include the words "believes," "potential" "expects,"
"anticipates," "intends," "projected," "estimates," "plans," "outlook,"
and similar expressions or future or conditional verbs such as "will,"
"should," "would," "may," "look to" and "could" are generally
forward-looking in nature and not historical facts. 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. These factors are discussed in Item 1A of
our Annual Report on Form 10-K for the year ended December 31, 2015,
filed with the Securities and Exchange Commission. In addition, this
press release contains certain forward-looking statements that involve
risks and uncertainties associated with the transaction between Fortune
Brands Home & Security, Inc. ("FBHS") and ROHL, LLC ("ROHL"). These
risks and uncertainties include: the satisfaction of closing conditions
for the transaction between FBHS and ROHL; market conditions; the impact
of any failure to complete the transaction; the risk that FBHS will not
realize the anticipated benefits of the transaction; and other factors
beyond the companies' control. 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160818006125/en/
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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