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Home and security products manufacturer, Fortune Brands Home and Security Inc. (FBHS - Snapshot Report) has successfully completed its previously announced acquisition of a privately-owned producer of bathroom vanities and vanity sink tops, WoodCrafters Home Products, for a total consideration of $300 million.

Fortune Brands funded the acquisition using its cash on hand and credit facilities. The company estimates the purchase price for the acquisition to be equivalent to 7.5x annual EBITDA. However, it expects the operating synergies from the acquisition to lower the purchase multiple to 6.0x EBITDA over the next two years.

With the recovery in the cabinet markets, Fortune Brands believes this acquisition will enhance its long established leadership position in the kitchen and bath cabinets market. It expects WoodCrafters’ strength in manufacturing bathroom vanities and sink tops to add to its assortments for the bathroom with increased product varieties, better supply chain control and capacity additions in the low-cost North American manufacturing category.

Based in Weslaco, Texas, WoodCrafters generates an annual sale of $230 million and has operations spread out in southern Texas and northern Mexico. Joining forces with Fortune Brands, WoodCrafters is expected to function as a wing of MasterBrand Cabinets Inc., the company’s kitchen & bath cabinetry unit. Fortune Brands has plans in place to smoothly absorb WoodCrafters’ 2,000 employees into the existing management team of MasterBrand Cabinets.

Further, the company expects the acquisition to be fully accretive to its earnings per share in fiscal 2014, coming in the range of 11 cents – 13 cents, excluding charges or gains and operating synergies for the full year. However, the company’s recently outlined 2013 earnings per share guidance do not include any impact from the transaction.

Based in Deerfield, Ill., Fortune Brands is a leading producer of products and services focused on fulfilling aspirations of homeowners and securing their lives. The company’s brands include Master Lock security products, MasterBrand cabinets, Moen faucets, Simonton windows and Therma-Tru entry door systems. The company currently has a Zacks Rank #1 (Strong Buy).

Other companies performing well in the retail home furnishing industry include Haverty Furniture Companies Inc. (HVT - Snapshot Report), Restoration Hardware Holdings Inc. (RH - Snapshot Report) and Kirkland’s Inc. (KIRK - Analyst Report). Of these, Haverty and Restoration Hardware carry a Zacks Rank #1 (Strong Buy), while Kirkland’s has a Zacks Rank #2 (Buy).

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