will buy window-maker SBR Inc. for about $630 million, finances through stock and debt.
SBR, based in Parkersburg, W. Va., specializes in vinyl-framed windows and sells the Simonton line, among others. The company does about $565 million in annual revenue. Fortune sees the acquisition adding 6 cents to 8 cents a share to its earnings in the first 12 months and more in later years.
"This acquisition is another excellent high-return growth opportunity and the next logical step in building our successful Home & Hardware business," Fortune said. "As a leader in the most attractive segment of the windows market -- highly profitable vinyl replacement windows -- Simonton is a strong and growing brand with unsurpassed nationwide reach."
"The use of stock for part of the purchase price was very appealing to the seller and gave us added flexibility in making a high-return acquisition at an attractive valuation that we believe serves our shareholders well. At this point, we expect the stock component will be in the range of 60%-70% of the total purchase price, contingent on the elections by SBR's shareholders."