Fortune Brands Home & Security has made a strategic move to strengthen its position as the self-titled industry leader in cabinetry through its acquisition of WoodCrafters Home Products, completed on Thursday, June 20.
WoodCrafters, a privately owned manufacturer of bathroom vanities and bathroom sink tops with annual sales of $230 million, will become part of Fortune's Kitchen & Bath Cabinetry segment as a business unit of MasterBrand Cabinets. WoodCrafters will retain its current management structure, staff, operations and locations.
"We've been a leader in kitchen and bath cabinets for years," said Fortune CEO Chris Klein. "WoodCrafter's strength in vanities and integrated sink basin tops immediately strengthens our offerings for the bathroom, with more products, more control over our supply chain and expanded low-cost North American manufacturing capacity. The cabinet market is in the early stages of recovery. Now is the perfect time to add to our leadership position."
Fortune completed the acquisition for $300 million, the projected equivalent of 7.5 times the annual EBITDA. According to the company, the purchase multiple could shrink to 6 times EBITDA over the next couple of years.
The news comes amid further changes at Fortune, which appointed Terry Horan as the new president of its security and storage business Wednesday. Horan will be replacing incumbent retiree John Heppner and will assume full responsibility on July 8. Horan was most recently president and CEO of Robert Bosch Tool. According to Klein, Horan has a proven track record of creating growth in both brand and product development.