Tampa, Fla.-based doormaker Masonite International Corp. (NYSE: DOOR)’s acquisition of Fleetwood Aluminum Products broadened its product lineup and allowed it to enter new markets. The $285 million transaction was funded with a combination of cash on hand and borrowings under Masonite’s credit facility. Masonite anticipates that Fleetwood will generate revenue of around $150 million in 2024.
Family-Owned Business
A family-owned business since 1961, Fleetwood designs and manufactures aluminum-framed glass door and window products for luxury homes. The acquisition extends the Corona, Calif.-based company’s strong regional presence from primarily the West Coast into other geographies through Masonite’s global customer reach.
The acquisition of Fleetwood aligns with Masonite’s strategy to broaden its presence in the doors and windows manufacturing industry by venturing into new segments. With the acquisition, Masonite gains access to a network of Fleetwood’s more than 200 exclusive dealers that partner with homebuilders and architects. Under the deal, Fleetwood operates as an independent business unit within Masonite’s North American residential business segment.
Residential Construction Outlook
Economic uncertainty and increased financing costs weighed heavily on the outlook for residential construction throughout 2023. The M&A team at Kroll’s Investment Banking, the investment bank advising Fleetwood, believed strongly in the differentiated nature of Fleetwood’s products. Despite the economic uncertainty, Fleetwood’s strong reputation and brand captured strong levels of interest from strategics in the sector that are focused on deploying capital with a long-term perspective throughout the home building cycle.
For more Deals of the Year coverage, see Mergers and Acquisitions Names the 2024 Middle-Market Deals of the Year.
