Fortune Brands Home & Security (FBHS) Completes Riobel Acquisition; Will Form New Global Plumbing Group
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Fortune Brands Home & Security, Inc. (NYSE: FBHS) announced the creation of a new Global Plumbing Group (GPG), a strategic first step to accelerate growth opportunities and transform its plumbing business. Fortune Brands has completed its first acquisition under the GPG, Riobel, and has also signed an agreement to acquire ROHL and its brands.
“The creation of the GPG platform provides the foundation to accelerate growth in our plumbing segment, providing the critical infrastructure to support a multi-brand, -channel and -geography plumbing business,” said Chris Klein, chief executive officer, Fortune Brands. “Most importantly, the GPG platform enhances the potential for future growth opportunities as we look to grow plumbing sales to $2.5 billion by 2020.”
The GPG platform will support the growth of multiple plumbing brands simultaneously with an enhanced set of products and brands while leveraging the Company’s global supply chain and broad distribution network. It paves the way for the addition of acquisitions, joint ventures, supply agreements and distribution agreements, and allows for seamless integration of new products and brands. It also accelerates synergistic growth opportunities and initiatives across the Company’s plumbing business.
Nicholas Fink has been named as president of the GPG. He joined Fortune Brands in 2015 from Beam Suntory where he was the president of Asia Pacific and South America, leading eight operating units in 45 markets while growing market share and integrating businesses. He brings an established track record as a results-oriented leader with strengths in international markets, industry-leading consumer brands and successful M&A transactions. Fink has been leading Fortune Brands’ Global Growth & Development team since joining the Company.
As a first step towards future growth and expansion, Fortune Brands recently acquired Riobel, a Canadian premium showroom brand. Riobel has the potential for significant profitable growth with approximately $40 million in annual sales, and brings innovation and best-in-class customer service.
Today the Company also signed an agreement to acquire ROHL, a California-based luxury brand, which includes the ROHL and Perrin & Rowe brands, as well as a successful collection with California-based designer Michael Berman. ROHL has the potential for significant profitable growth with around $70 million in annual sales, and brings a design-centric, artisanal approach to its luxury products. The transaction is expected to close in the third quarter.
“Since our founding in 1983, our family has focused on building a successful business grounded in quality, style and strong partnerships,” said Lou Rohl, president, ROHL. “We are excited to join the Fortune Brands family of companies and enter a new chapter of our growth that will allow us to capture even greater opportunities ahead.”
Riobel, ROHL and Perrin & Rowe mark the opportunity to broaden the portfolio offering beyond the GPG’s number-one positioned Moen brand. The brands will retain their own brand identities, teams, locations and partners, and other elements of the businesses that have made them successful.
“With the new GPG structure now in place, this is a great time to welcome Riobel, ROHL and Perrin & Rowe into our plumbing business. Today, we have tremendous opportunities to transform our business, enter new markets, develop new products, manage our channels and customers in more holistic ways and optimize a portfolio of brands as we grow at a faster pace,” said Klein. “The GPG platform, strategic acquisitions and joint ventures reflect our continued focus on growing the business. We continue to look at other growth opportunities for the GPG and hope to execute additional transactions as part of our strategy to drive incremental growth.”
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