| TORONTO, Ontario -- Masonite International Corporation announced Monday that it has signed a definitive agreement to acquire the residential entry door business of The Stanley Works. The purchase price is US$160 million in cash. The definitive agreement includes a multi-year license for the use of the “Stanley Door” brand name and related brands by Masonite following closing. Stanley’s entry door business sales are approximately US$200 million (Canadian GAAP). As discussed below, the acquisition is expected to be immediately accretive to Masonite’s earnings per share.
Closing of the transaction is subject to certain governmental approvals, third-party consents and customary conditions, and is anticipated to occur in the first quarter of 2004. Stanley’s entry door business manufactures and pre-hangs steel and fiberglass residential entry doors and entry systems for sale primarily to the retail home improvement market in the United States.
Stanley’s entry door business has state of the art facilities in Charlotte, North Carolina; Langley, British Columbia; Winchester, Virginia; Garland, Texas; and Rancho Cucamonga, California.
“We are very pleased with this acquisition for a number of reasons”, said Philip S. Orsino, Masonite’s President and Chief Executive Officer. “The acquisition is a clear continuation of our focused strategy in the door business worldwide. As a result of the acquisition, we expect to achieve substantial operating efficiencies across all our residential door product lines. Stanley’s entry door business accelerates our “all-products solution” initiative. The addition to our existing manufacturing and fabrication facilities of Stanley’s similar facilities will lead to significant efficiencies. Also, the acquisition presents opportunities for more effective global procurement of raw materials, product development and standardization. These initiatives will lower our operating costs and further enhance our already strong capabilities to provide excellent service and the widest product range to our customers. We are very proud to welcome Stanley’s employees, customers and suppliers to Masonite.”
Masonite has its Corporate Headquarters in Mississauga, Ontario and its International Administrative Offices in Tampa, Florida. It operates over 70 facilities in twelve countries in North America, South America, Europe, Asia and Africa and has over 12,000 employees.
Visit Masonite’s website at: http://www.masonite.com/
This eUpdate posting by: Steve Joyce
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