Fiberon LLC, a leading producer of composite-based decking, railing and fencing, has been acquired by Fortune Brands Home & Security Inc. in a deal valued at $470 million.
Deerfield, Ill.-based Fortune Brands will now place Fiberon, of New London, N.C., in its newly formed Doors & Security unit, officials said in an Aug. 23 news release.
For Fortune Brands, the acquisition "provides exciting category expansion and product extension opportunities for our Doors & Security segment into the outdoor living space — one of the fastest-growing areas of the home," CEO Chris Klein said in the release.
He added that Fiberon, with production sites in New London and in Meridian, Idaho, "brings leadership in performance materials sustainably made in the [United States] from recycled materials" and that the firm "has built its business in the most attractive segment of the decking category: nonwood, capped composites."
Fortune Brands officials also said that capped composite nonwood products, where Fiberon has focused its business, are growing at nearly 10 percent annually and now represent approximately one-quarter of the decking market.
In the release, Fiberon CEO Doug Mancosh said Fortune Brands' distribution, commitment and execution "are a powerful combination to drive sales and profit growth" and that the deal will "create new opportunities for Fiberon to thrive."
Fiberon was founded in 1997 and now employs 475 with annual sales of approximately $200 million, according to the release. The firm ranked 21st in Plastics News' most recent ranking of North American pipe, profile and tubing makers.
According to its website, Fiberon "built its business selling high-quality, eco-friendly composite decking, railing and fencing." The Meridian plant opened in 2007 and gave the firm "efficient bi-coastal manufacturing and distribution."
Fiberon now operates in a combined 400,000 square feet of manufacturing space and 175,000 square feet of warehouse and assembly space, according to the website. The firm claims its manufacturing processes result in a 98.5 percent recovery rate of manufacturing material waste that prevents more than 150 million pounds of plastic and wood from reaching landfills and incinerators each year.
Also on the website, Fiberon claims a number of firsts for the composites market, including capped composite decking with multichromatic technology, PVC composite railing, stain and fade warranty on capped composites and molded and embossed decking.
Fortune Brands is a publicly traded company that is part of the S&P 500 stock index. Its well-known brands include Moen plumbing and Master Lock locks.
Fortune Brands employs 23,000 and posted sales of $5.3 billion in 2017.
