Profile: Fortune Brands Home & Security Inc (FBHS.N)

Fortune Brands Home & Security, Inc. is engaged in home and security products with companies focused on the design, manufacture and sale of products in Kitchen & Bath Cabinetry, Plumbing & Accessories, advanced material windows & entry door Systems, and security and storage products. The Company operates through four business segments: Kitchen & Bath Cabinetry, Plumbing & Accessories, Advanced Material Windows & Door Systems, and Security & Storage. The Kitchen & Bath Cabinetry segment manufactures custom, semi-custom, and stock cabinetry for the kitchen, bath, and other areas of the home. Plumbing & Accessories segment manufactures and assembles faucets, accessories, and kitchen sinks The Advanced Material Windows & Door Systems segment manufactures and sells fiberglass and steel entry door systems. The Security & Storage segment provides locks, safety, and security devices and electronic security products. The Company was formed as a wholly owned subsidiary of Beam, Inc., formerly Fortune Brands, until it was spun-off on October 3, 2011 and operates independently.

Kitchen & Bath Cabinetry

The Company’s Kitchen & Bath Cabinetry segment’s products includes brand names, such as Aristokraft, Omega, Kitchen Craft, Schrock, Diamond, HomeCrest, Decora, Kemper, Thomasville and Martha Stewart Living. Principally all of this segment’s sales are in North America. The Company sells directly to kitchen and bath dealers, home centers, wholesalers and builders. During the year ended December 31, 2011, sales to The Home Depot and Lowe's consisted of approximately 34% of net sales of the Kitchen & Bath Cabinetry segment.

The Company competes with Masco and American Woodmark.

Plumbing & Accessories

The Plumbing & Accessories segment manufactures accessories and kitchen sinks in North America, China and India, predominantly under the Moen brand. The sells its Plumbing & Accessories products principally in the United States and Canada. It also sells them in China, India, Mexico, South America and Southeast Asia.It sells directly through its own sales force and indirectly through independent manufacturers’ representatives, primarily to wholesalers, home centers, mass merchandisers and industrial distributors. During 2011, sales to The Home Depot and Lowe's consisted of approximately 31% of net sales of the Plumbing & Accessories segment.

The Company competes with Delta, Kohler, Pfister and American Standard.

Advanced Material Windows & Door Systems

The Company’s Advanced Material Windows & Door Systems segment manufactures fiberglass and steel entry door systems, vinyl-framed window and patio doors, and urethane millwork product lines. Therma-Tru products include fiberglass and steel residential entry door and patio door systems, primarily for sale in the United States and Canada. Simonton brand of vinyl-framed windows and patio doors are mainly manufactured and sold in the United States. The segment’s principal customers are home centers, millwork building products and wholesale distributors, and specialty dealers that provide products to the residential new construction market, as well as to the remodeling and renovation markets. During 2011, sales to The Home Depot and Lowe’s comprised approximately 20% of net sales of the Advanced Material Windows & Door Systems segment.

The Company competes with Masonite, JELD-WEN and Plastpro, Silverline, Atrium and Milgard.

Security & Storage

The Company’s Security & Storage segment consists of locks, safety and security devices, and electronic security products manufactured, sourced and distributed by Master Lock and tool storage and garage organization products manufactured by Waterloo. The segment sells products principally in the United States Canada, Europe, Australia and Central America. Master Lock manufactures and sells key-controlled and combination padlocks, bicycle and cable locks, built-in locker locks, door hardware, automotive, trailer and towing locks, and other specialty safety and security devices. Master Lock sells products for consumer use to hardware and other retail outlets, wholesale distributors and home centers, industrial and institutional users, original equipment manufacturers and retail outlets.

Waterloo manufactures tool storage and garage organization products, steel toolboxes, tool chests, workbenches and related products. Waterloo primarily sells to Sears retail stores. In addition, Waterloo sells under the Waterloo and private-label brand names to specialty industrial and automotive dealers, mass merchandisers, home centers and hardware stores.

The Company competes with Abus, W.H. Brady, Hampton, Kwikset, Schlage, Assa Abloy, Snap-On, Kennedy, Stanley Black & Decker, Stack-On, Stanley Black & Decker and Keter, Newell Rubbermaid.