Kitchen and bath cabinet maker Norcraft Companies said Monday it has agreed to be acquired by Fortune Brands Home & Security for about $600 million.
Fortune Brands, the largest manufacturer of kitchen and bathroom cabinetry in the United States, is expected to complete the acquisition of the Eagan-based company this spring.
Fortune Brands is paying $25.50 a share for Norcraft, a 19.4 percent premium over its average share price during the 60 days ended March 27. The company owns a portfolio of home products brands, including Moen, Master Lock and SentrySafe.
The acquisition caps a significant turnaround for the fast-growing Norcraft, which became a public company in 2013.
Also Monday, Norcraft reported a 17 percent increase in sales for the fourth quarter 2014, to $94 million, driven largely by price increases. Norcraft posted net income of $4.03 million for the fourth quarter, compared with a $13.9 million loss for the same period a year ago.
For the full year, sales increased 11 percent, to $376 million. The company posted a $2.5 million profit for the year, following a $14 million loss in 2013. Norcraft benefited from cost cutting and a drop in raw material costs.
“As a result, we ended 2014 with a firmly established platform to continue expanding Norcraft’s customer base with a broad range of higher-end, semi-custom cabinetry within the truly exceptional dealer channel,” Mark Buller, Norcroft’s chief executive, said in a statement.
Norcraft sells seven brands of cabinet products including: Mid Continent Cabinetry, Norcraft Cabinetry, UltraCraft, StarMark Cabinetry, Fieldstone Cabinetry, Brookwood and Urban Effects.
In September, it announced that it was building a $7.1 million addition to its kitchen and bathroom cabinet factory in Winnipeg, Manitoba. The project will be finished before summer’s end, officials said.