In a $925 million deal, Fortune Brands Inc. of Lincolnshire, Ill., is acquiring fiberglass door maker Therma-Tru Corp. from private investment firm Kenner & Co. Inc.
The news comes less than one week after New York-based Kenner acquired window and door maker Atrium Cos. Inc. of Dallas in a $610 million cash deal. Therma-Tru had been Kenner's largest holding prior to the Atrium deal.
Publicly held Fortune Brands should complete the Therma-Tru deal within two weeks, officials said.
``Therma-Tru is the industry leader, with excellent growth profile and strong management,'' said Norm Wesley, Fortune's chairman and chief executive officer, in a Nov. 3 conference call to shareholders.
``It's a very profitable company that has driven consistently strong growth, and revenues now exceed $400 million. In the [U.S. entry door] marketplace, Maumee, Ohio-based Therma-Tru has the leading share of about 25 percent and has substantially higher market share in the fastest-growing segment of the market, which is fiberglass doors.''
Therma-Tru will be added to Fortune's home and hardware business, which includes faucet maker Moen, MasterBrand Cabinets and Waterloo Industries, a maker of tool storage products. Fortune's sales in that segment exceeded $2.5 billion in 2002, representing 45 percent of Fortune's total sales.
Meantime, Kenner plans to add to the Atrium purchase by pursuing plastics-related building and construction acquisitions.
``We're buying Atrium and we'll do other deals with that, too,'' President Jeff Kenner said in a Nov. 4 telephone interview. ``We like the home building sector.''
Fortune said Therma-Tru's management will stay intact.
Therma-Tru already is exploring opportunities in other areas, including patio doors and international markets, according to Wesley.
The company has capacity to support further growth, with facilities in Butler, Ind.; Roland, Okla.; Wilmington, N.C.; Phoenix; Fredericksburg, Va.; and Matamoros, Mexico. Therma-Tru has 2,500 employees.
