Fortune Brands Innovations Explained

Fortune Brands Innovations, Inc.
Former Name:	Fortune Brands Home & Security, Inc.
Logo Alt:	FBHS Logo
Type:	Public
Key People:	Nicholas I. Fink, CEO
Products:	Home & Security
Subsid:	Moen Incorporated House of Rohl Therma-Tru Larson Fiberon Master Lock Sentry Group MasterBrand Cabinets
Net Income:	US$1.1 billion (2021)
Assets:	US$7.9 billion (2021)
Equity:	US$3.1 billion (2021)
Num Employees:	28,000 (2021)

Fortune Brands Innovations, Inc. (or "Fortune Brands") is an American manufacturer of home and security products, headquartered in Deerfield, Illinois. Its portfolio of businesses and brands includes Moen and the House of Rohl; outdoor living and security products from Therma-Tru, Larson, Fiberon, Master Lock and SentrySafe; and MasterBrand Cabinets. Fortune Brands is a Fortune 500 company and part of the S&P 400 Index. As of December 31, 2021, the company reported employing approximately 28,000 associates and posted full-year 2021 net sales of $7.7 billion.

History

Fortune Brands Home & Security, Inc. began trading on the New York Stock Exchange under the ticker symbol FBHS on October 3, 2011. Prior to its spin-off, the company operated as a division of the former Fortune Brands, Inc. holding company.^[1] Following the separation, Fortune Brands, Inc. changed its name to Beam Inc. and retained no ownership interest in Fortune Brands Home & Security, Inc.

In August 2022, Fortune Brands acquired Aqualisa Holdings, a shower products manufacturer, for $160 million. ^[2]

Business segments

As of April 28, 2022, Fortune Brands has three reporting segments: Water Innovations, Outdoors & Security and Cabinets.

Water Innovations

Fortune Brands' Water Innovations segment (formerly the Global Plumbing Group)^{[3] [4]} is headquartered in North Olmsted, Ohio. The segment manufactures or assembles and sells faucets, accessories, kitchen sinks and waste disposals, predominantly under the Moen and House of Rohl brands, which includes luxury branded plumbing products from Riobel, Perrin & Rowe, Victoria + Albert and Shaws. In addition to offering faucets, showers, tubs, sinks and accessories, the Moen brand is expanding its home whole water management and digital offerings with the Moen Smart Water Network.^{[5] [6]}

Outdoors & Security

Fortune Brands' Outdoors & Security segment is headquartered in Maumee, Ohio. Formerly operating under "Doors & Security",^[7] its name was changed to Outdoors & Security^[8] in November 2020 preceding the acquisition of Larson in December 2020.^[9] The Outdoors & Security segment manufactures and sells fiberglass and steel entry door systems under the Therma-Tru brand name, storm, screen and security doors under the Larson brand name, composite decking and railing under the Fiberon brand name, and urethane millwork under the Fypon brand name. Fortune Brands acquired Solar Innovations in January 2022 to support the segment’s outdoor living strategy.^[10] The Outdoors & Security segment also manufactures, sources and distributes locks, safety and security devices, and electronic security products under the Master Lock and American Lock brands and fire resistant safes, security containers and commercial cabinets under the SentrySafe brand.^[11]

Cabinets

Fortune Brands' Cabinets segment is headquartered in Jasper, Indiana. MasterBrand Cabinets manufacturers and sells stock and semi-custom and custom cabinetry, as well as vanities for the kitchen, bath and other parts of the home. Brands within the MasterBrand Cabinets portfolio include Omega, Decora, Diamond, Aristokraft, Urbana and Mantra. In April 2022 Fortune Brands announced its intent to separate into two publicly traded companies via a tax-free spin-off of the Cabinets business.^{[12] [13]}

Mergers, acquisitions and divestitures

Fortune Brands Home & Security, Inc. spun-off from Fortune Brands, Inc. on October 3, 2011, and began trading as a separate company on the NYSE. Below is the timeline of mergers, acquisitions and divestitures from the time of the spin-off:

• June 2013: Acquired WoodCrafters^{[14] [15]}
• July 2014: Acquired SentrySafe^{[16] [17]}
• September 2014: Sold Simonton Windows^{[18] [19] [20]}
• May 2015: Acquired Norcraft Companies^{[21] [22] [23]}
• September 2015: Sold Waterloo tool storage^{[24] [25]}
• May 2016: Acquired Riobel^{[26] [27]}
• September 2016: Acquired Rohl and Perrin & Rowe^[28]
• July 2017: Acquired Shaws of England^[29]
• October 2017: Acquired Victoria + Albert
• August 2018: Acquired Fiberon^{[30] [31]}
• December 2020: Acquired Larson^[32]
• January 2022: Acquired Solar Innovations
• July 2022: Acquired Aqualisa Products Limited
• December 2022: Spun-off MasterBrand, Inc.

Financial performance

Fortune Brands' business strategy includes investing in its current brands and businesses to build on its brands' leading market positions and develop innovative products that promote growth, leverage its global supply chains to be more flexible and improve quality, costs and efficiencies and generating incremental shareholder value by deploying capital for strategic mergers & acquisitions, share repurchases and dividends.

As of the end of 2021, Fortune Brands increased its annual sales every year since its first full year as an independently traded company.^[33]

Leadership

Nicholas I. Fink is chief executive officer of Fortune Brands and is on its board of directors. He assumed the CEO role on January 6, 2020,^[34] after having served as chief operating officer of Fortune Brands, and prior to that, the president of the Fortune Brands Global Plumbing Group (now known as Water innovations). Fink succeeded Christopher J. Klein, who had held the chief executive officer role at Fortune Brands from 2011 through his retirement from CEO on December 31, 2019.

Patrick D. Hallinan is chief financial officer of Fortune Brands.^[35] He assumed the CFO role on July 1, 2017. Hallinan succeeded E. Lee Wyatt, who had held the chief financial officer role at Fortune Brands from 2011 through June 30, 2017. Wyatt retired from Fortune Brands at the end of 2017.

Board of directors

Susan Saltzbart Kilsby is the independent, non-executive chair of Fortune Brands' Board of Directors.^[36] Kilsby spent most of her career at Credit Suisse AG, holding a variety of senior positions including managing director and head of mergers and acquisitions for Europe, the Middle East and Africa from 2009 until her retirement in May 2014.

She first joined Fortune Brands' board on July 28, 2015. On January 1, 2020, she became non-executive chair of the Board of Directors, succeeding Christopher J. Klein, who had held the executive board chair position from January 1, 2020, to December 31, 2020. Prior to Klein, David M. Thomas served as chair of the board from 2011 to December 31, 2019.

All members of the board, except for Fink, are independent under the New York Stock Exchange rules.  

Awards

Fortune Brands Home & Security, Inc., has been included on the Fortune List of World's Most Admired Companies within the Home Equipment, Furnishings category, for the following years: 2022,^[37] 2021,^[38] 2020,^[39] 2019,^[40] 2017,^[41] 2016,^[42] 2015,^[43] 2014, 2013,^[44] and 2012.^[45]

Fortune Brands was named to Crain's Chicago Business' 2020 List of Chicago's Most Innovative Companies.^[46]

In 2020,^[47] 2021,^[48] and 2022^[49] Fortune Brands was named to Newsweeks List of America's Most Responsible Companies.

Notes and References

1. News: Fortune Brands to Complete Spin-Off of Home & Security Business and Become Pure-Play Spirits Company Named Beam . March 5, 2021 . Business Wire . October 3, 2011.
2. Web site: MarketScreener . Fortune Brands Buys Aqualisa for $160 Million MarketScreener . 2022-08-01 . www.marketscreener.com . August 2022 . en.
3. Web site: Fortune Brands (FBHS) Q1 Earnings & Revenues Beat Estimates . Markets Insider . 11 May 2022.
4. Web site: Salzman . Avi . How a Spinoff Will Boost Fortune Brands - and Make the Stock a Buy Now . Barron's . 11 May 2022.
5. News: Moen Launches Industry-First Smart Water Network to Provide Convenience and Security; Experience it at CES 2021 . March 8, 2021 . Yahoo! Finance . January 11, 2021.
6. Web site: Moen's New Touchless Smart Faucets Are Full of Functionality . Reviewed . 11 May 2022.
7. News: Fortune Brands Signs Agreement to Acquire Fiberon; Marks Entry into Fast Growing Outdoor Living Market within New Doors & Security Segment . March 8, 2021 . Business Wire . August 23, 2018.
8. News: CORRECTING and REPLACING Fortune Brands Expands Further Into Outdoor Living; Renames Segment Outdoors & Security and Signs Agreement to Acquire LARSON . March 8, 2021 . Business Wire . November 17, 2020.
9. News: Fortune Brands Completes Acquisition of LARSON as Part of Outdoors & Security Segment . March 9, 2021 . Business Wire . December 14, 2020.
10. News: Fortune Brands Acquires Solar Innovations; Further Expands Its Outdoor Living Offerings . 11 May 2022 . Yahoo! Finance . 1 February 2022.
11. Web site: Those who invested in Fortune Brands Innovations (NYSE:FBIN) three years ago are up 83% . 2023-05-04 . simplywall.st.
12. News: FORTUNE BRANDS TO SEPARATE INTO TWO PUBLICLY TRADED COMPANIES . 11 May 2022 . Window + Door . 3 May 2022.
13. News: Adams . Larry . Fortune Brands to split in two; cabinets to become a stand-alone business . 12 May 2022 . Woodworking Network . 1 May 2022.
14. News: Fortune Brands Home & Security Completes Acquisition of WoodCrafters Home Products . March 5, 2021 . Business Wire . June 20, 2013.
15. News: Fortune Brands Acquires Vanity-Maker WoodCrafters Home Products . March 8, 2021 . Woodworking Network . June 25, 2013.
16. News: Master Lock acquires Sentry Safe . March 8, 2021 . SecurityInfoWatch.com . August 5, 2014.
17. News: Fortune Brands Reports Sales and EPS for Q2; Updates 2014 Annual Outlook; Announces Acquisition and Share Repurchases . March 5, 2021 . Business Wire . July 30, 2014.
18. News: Ply Gem Acquires Simonton Windows from Fortune Brands . March 8, 2021 . ProSales . 20 August 2014.
19. News: Fortune Brands Completes Sale of Simonton Windows . March 5, 2021 . Business Wire . September 22, 2014.
20. News: Ply Gem Industries Completes Acquisition of Simonton Windows from Fortune Brands Home & Security . 5 March 2021 . Business Wire . September 22, 2014.
21. News: Fortune Brands Agrees to Acquire Cabinetry Maker Norcraft . March 8, 2021 . The Wall Street Journal . March 30, 2015.
22. News: Eagan-based Norcraft Cos. to be acquired by Fortune Brands in $600 million deal . March 8, 2021 . StarTribune . March 30, 2015.
23. News: Fortune Brands Completes Tender Offer for Norcraft Companies, Inc. . March 5, 2021 . Business Wire . May 12, 2015.
24. News: Waterloo Industries under new ownership; no changes planned for local workers . March 8, 2021 . The Courier . November 15, 2015.
25. Web site: FBHS 2015 10-K Filing . Fortune Brands Home & Security . March 5, 2021.
26. News: Fortune Brands' Global Plumbing Group acquires Riobel . March 8, 2021 . HPAC . September 8, 2016.
27. News: Fortune Brands Creates Global Plumbing Group (GPG) as a Foundation to Accelerate Plumbing Growth Opportunities, Announces Acquisitions of Luxury Brands . March 9, 2021 . Business Wire . August 18, 2016.
28. News: Fortune Forms Plumbing Group Acquires ROHL . March 8, 2021 . Kitchen & Bath Design News .
29. News: Fortune Brands Reports Third Quarter Sales and EPS Growth; Narrows 2017 Annual EPS Outlook . March 9, 2021 . Business Wire . October 25, 2017.
30. News: Fortune Brands Acquires Fiberon, Enters Outdoor Living Market . March 8, 2021 . ProSales . August 23, 2018.
31. News: Fortune Brands Completes Acquisition of Fiberon as Part of Doors & Security Segment . March 5, 2021 . Business Wire . September 11, 2018.
32. News: Fortune Brands' Acquisition of Larson Complete . Door and Window Market . December 15, 2020.
33. Web site: FBHS Annual Reports & Proxies . Fortune Brands Home & Security . May 11, 2022.
34. News: Fortune Brands Announces Planned Leadership Transitions Effective January 6, 2020 . March 9, 2021 . Business Wire . September 24, 2019.
35. News: Fortune Brands Names Patrick Hallinan as Senior Vice President and Chief Financial Officer . March 5, 2021 . Business Wire . June 26, 2017.
36. News: Fortune Brands Appoints Susan Saltzbart Kilsby as Non-Executive Chair of the Board . March 5, 2021 . Business Wire . December 21, 2020.
37. Web site: World's Most Admired Companies 2022: Fortune Brands Home & Security . Fortune . May 11, 2022.
38. Web site: World's Most Admired Companies 2021: Fortune Brands Home & Security . Fortune . March 5, 2021.
39. Web site: World's Most Admired Companies 2020: Fortune Brands Home & Security . Fortune . March 5, 2021.
40. Web site: World's Most Admired Companies 2019: Fortune Brands Home & Security . Fortune . March 5, 2021.
41. Web site: World's Most Admired Companies 2017: Fortune Brands Home & Security . Fortune . March 5, 2021.
42. Web site: World's Most Admired Companies 2016: Fortune Brands Home & Security . Fortune . March 5, 2021.
43. Web site: World's Most Admired Companies 2015: Fortune Brands Home & Security . Fortune . March 5, 2021.
44. News: Fortune Brands Home & Security Named to FORTUNE Magazine's List of "World's Most Admired Companies" for Second Consecutive Year . March 5, 2021 . Business Wire . March 7, 2013.
45. News: Fortune Brands Home & Security Named to FORTUNE Magazine's List of "World's Most Admired Companies" . March 5, 2021 . Business Wire . March 6, 2012.
46. News: Chicago's Most Innovative Companies 2020 . March 5, 2021 . Crain's Business Chicago . October 23, 2020.
47. Web site: America's Most Responsible Companies 2020 . Newsweek . November 20, 2019 . March 5, 2021.
48. Web site: America's Most Responsible Companies 2021 . Newsweek . November 24, 2020 . March 5, 2021.
49. Web site: America's Most Responsible Companies 2022 . Newsweek . December 2, 2021 . May 11, 2022.