Door manufacturer Masonite International Corp. (NYSE: DOOR) has bought doorkit maker National Hickman. The Birmingham, England-based target makes doorkits for the U.K. housing market and generates about $110 million in annual sales. The $82 million deal was completed on Aug. 5.
“Hickman and Masonite have shared a long history together in the U.K., and Hickman is a natural addition to Masonite’s business,” says Hickman managing director Dave Formatson.
The transaction represents Tampa, Florida-based Masonite’s second acquisition in the U.K., following the $16 million purchase of Performance Doorset Solutions Ltd in July. Masonite is betting that the U.K. housing market will continue to recover.
In addition to making purchases, Masonite has been shedding assets. The company sold French subsidiary Premdor SAS to Perceva SAS for undisclosed terms in July.
Like most companies in the home-building business, the recession took a toll on Masonite, which was founded in 1924. Before the recent housing slump, Kohlberg Kravis Roberts & Co. (NYSE: KKR) paid $2.7 billion to buy the company in 2005. Then in March of 2009, Masonite filed for bankruptcy, citing an excessive debt load. Shortly thereafter, it restructured debt and exited bankruptcy in June of that year, a process that wiped out KKR’s stake in the company. Masonite has been on a growth path ever since.