DEERFIELD, Ill.--(BUSINESS WIRE)--Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading home and security products company, celebrated its five-year anniversary as an independent company – a critical period of time where it built a solid foundation to drive both organic and incremental growth over the long-term while also delivering exceptional returns for shareholders.
“We are proud of our accomplishments during this short period of time. We laid the foundation for core growth by building a stronger business model, and deployed capital in value-creating ways to drive incremental growth,” said Chris Klein, chief executive officer, Fortune Brands. “Our combined efforts have positioned the business well for future growth and performance, while delivering consistently strong results.”
Over the last five years, Fortune Brands built upon its structural competitive advantages and leading market share positions, created stronger operating capabilities and platforms, invested in capacity and productivity, strengthened its management team, and drove new products and programs in more profitable channels.
The Company also grew incrementally by deploying $1.4 billion in cash to complete several strategic acquisitions, including WoodCrafters cabinets, Norcraft cabinets, SentrySafe security products and Riobel, ROHL and Perrin & Rowe plumbing products. The Company also repurchased more than $900 million in shares, in addition to initiating and steadily increasing its dividend.
During this same period of time the Company nearly doubled sales, more than doubled its operating margin and increased EPS nearly five-fold.
Most recently, the Company demonstrated its continued commitment to drive both organic and incremental growth by forming the Global Plumbing Group (GPG), which now includes the portfolio of Moen, Riobel, ROHL and Perrin & Rowe. Similar to the structure of the Cabinets segment, which was created to operate and grow a multi-brand, -channel and -geography business, the GPG is a strategic step to accelerate future growth opportunities as the Plumbing business looks to grow sales to $2.5 billion by 2020.
“While our track record over the last five years has been impressive, our most critical achievement is the foundation we have built for our company, which will enable us to capture even greater opportunities ahead,” said Klein.
Fortune Brands reached a number of other important milestones that represent its growth and success in the marketplace. In 2015 the Company refined its capital structure and received investment grade ratings from all three credit rating agencies to support the Company’s growth strategy. In 2016 the Company was added to the S&P 500 Index. And for the fifth consecutive year in 2016, Fortune Brands was named to FORTUNE Magazine’s List of World’s Most Admired Companies; the Company ranked No. 3 in the Home Equipment, Furnishings category.
About Fortune Brands
Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in Deerfield, Ill., creates products and services that fulfill the dreams of homeowners and help people feel more secure. The Company’s four operating segments are Cabinets, Plumbing, Doors and Security. Its trusted brands include more than a dozen core brands under MasterBrand Cabinets; Moen, ROHL and Riobel under the Global Plumbing Group (GPG); Therma-Tru entry door systems; and Master Lock and SentrySafe security products under The Master Lock Company. Fortune Brands holds market leadership positions in all of its segments. Fortune Brands is part of the S&P 500 Index. For more information, please visit www.FBHS.com.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains certain “forward-looking statements” regarding future financial performance, the potential of our categories and brands, and other matters. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of our management. Although we believe that these statements are based on reasonable assumptions, they are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those indicated in such statements. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including the factors discussed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission. The forward-looking statements included in this release are made as of the date hereof, and except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of this release.
