Big news today in the UK fenestration industry with the announcement that Door-Stop International has been acquired by the American doors company Masonite.
This is the full statement via Business Wire: TAMPA, Fla.–(BUSINESS WIRE)–Feb. 24, 2014– Masonite International Corporation (the “Company”) (NYSE:DOOR) today announced that it has completed the acquisition of Door-Stop International Limited (“Door-Stop”). Door-Stop is the United Kingdom’s largest pre-hanger and distributor of composite exterior residential doors and door sets.
Door-Stop employs approximately 200 people, with one facility in Nottinghamshire, UK. Door-Stop’s 2013 revenue exceeded US $38 million. The purchase price for 100% of the outstanding shares was approximately US $50 million, net of cash acquired.
“We believe the acquisition of Door-Stop positions Masonite as a leader in the manufacturing and distribution of residential doors and door sets for the UK market,” said Chris Virostek, Masonite’s Senior Vice President, Corporate Development. “We are excited about the capabilities that this acquisition adds to Masonite.”
“Door-Stop’s products and service model are a natural complement to Masonite’s business,” said Gary Dutton, Chairman and founder of Door-Stop. “We are pleased to see this transaction completed and are excited about the opportunities it will bring our employees and customers.”
For those who don’t know who Masonite are (because I didn’t until today), this is who they are: Masonite International Corporation is a leading global designer and manufacturer of interior and exterior doors for the residential new construction; the residential repair, renovation and re-modeling; and the non-residential building construction markets. Since 1925, Masonite has provided its customers with innovative products and superior service at compelling values. Masonite currently serves more than 7,000 customers in 80 countries. Additional information about Masonite can be found at www.masonite.com.
Masonite, a huge company with international credentials and the purchasing power to snap up one of the UK’s best and brightest new companies for a princely sum. Gary Dutton clearly felt this was a good move for Door-Stop and is obviously excited about the future. One thing that needs to be said is that during the early stages of any takeover the intentions of the purchasing company are not always clear. Right now it is unknown if Masonite want to make any changes to the business, i.e. staffing levels, product range and quality etc. Although sources at Door-Stop have already said jobs are safe and trading will continue as normal.
This could be a genuinely positive move for Door-Stop. Masonite are a massive company with a huge door range. If you have a look on their website the range and variety of their doors is far bigger than Door-Stop offer at the moment. Might we see a global influence in the future? Could we see more American style doors entering the UK entrance door market because of this takeover? It’s a possibility.
One thing is for sure, we’ll be hearing a lot more about Masonite in the UK entrance door market in the years to come.
Is this a good purchase for Door-Stop, or should we be a little more sceptical? Is it a sad thing that a once British company is now in the hands of another overseas business? All comments welcome in the section below.