Fortune Brands Home & Security Inc. (NYSE: FBHS) is buying Norcraft Companies Inc. (NYSE: NCFT), a kitchen cabinet maker, for $600 million.
Norcraft, headquartered in Eagan, Minnesota, manufactures kitchen and bathroom cabinetry.Norcraft had about $376 million in sales for 2014.
For Fortune Brands, the deal strengthens its product offering and rounds out regional market penetration, the company says. The Deerfield, Illinois-based buyer owns home-related brands, including MasterBrand cabinets, Moen faucets, Therma-Tru door systems and Master Lock and SentrySafe security products.
The purchase price works out to $25.50 per share. They company's shares closed at $22.90 before the deal was announced.
Citigroup Global Markets Inc. is Norcraft's financial adviser, and Ropes & Gray LLP is providing legal advice.
There have been a few home-related construction deals recently. Earlier in March, Installed Building Products Inc. (NYSE: IBP) bought BDI Insulation for $36 million, and before that, in February, Nautic Partners LLC bought plumbing and adhesives products maker IPS Corp. For more, see Growth in Construction Sector Spurs M&A in Building Products.