Fortune Brands Expands to Acquire LarsonNovember 17th, 2020 by Editor
Home and security products company Fortune Brands Home & Security, Inc., announced today that it has signed an agreement to acquire Larson Manufacturing, the North American brand of storm, screen and security doors, for approximately $660 million.
Larson also sells related outdoor living products including retractable screens and porch window, and the Fortune Brands announcement also included the company’s renaming of its Doors & Security segment to “Outdoors & Security,” a move the company says better represents its brands within the segment.
“The acquisition of Larson is aligned with our strategic focus on the fast-growing outdoor living space. The Larson suite of products creates a bridge from the inside to the outside of the home, and further strengthens Fortune Brands’ offerings in Doors and Decking,” said Nicholas Fink, chief executive officer of Fortune Brands. “Larson is the industry leading brand in a highly attractive category with differentiated positioning and fast-paced, consumer-driven innovation. We can accelerate growth and profitability by deploying our cross-company capabilities to create added value for all of our stakeholders.”
Larson is part of the approximately $1 billion U.S. storm door market that is largely driven by repair and remodel activity. Larson core products are lower-ticket DIY offerings that have a strong presence in the home center retail channel.
“Together, Larson and Therma-Tru have significant opportunities to drive growth and create value. There is tremendous potential to leverage the innovative products at Larson with our Therma-Tru and Fiberon offerings to provide a total exterior door system and capitalize on outdoor living trends such as multi-season rooms,” added Fink.
With revenues of approximately $390 million, Larson has approximately 1,200 associates and is headquartered in Brookings, S.D. The company expects that the Larson management team, associates and locations will remain in place.
“We are excited to join Fortune Brands. Having worked together this past year on innovations that connect homes to the outdoors, we have come to admire the company and its leading brands. We share a commitment to brand excellence, strong channel relationships and a culture of consumer-driven innovation,” said Jeff Rief, chief executive officer and president of Larson. “We are looking forward to driving even more growth by seizing new opportunities together in the door, security and outdoor living markets.”
The transaction is immediately accretive. The closing of the transaction is subject to regulatory approval and is expected to occur within the next 30 days.