KKR buys Canadian doormaker for C$3bn

The global buyout firm has agreed to acquire Masonite International in a C$3.1bn Canadian take-private.

New York-headquartered Kohlberg Kravis Roberts has agreed to acquire listed Canadian door products manufacturer Masonite International for C$3.1 billion ($2.5 billion; €1.9 billion).

The public-to-private offer represents C$40.20 per share, a 13 percent premium on Masonite’s closing stock price of C$35.50 on the Toronto stock exchange yesterday.

With a market cap of C$1.9 billion, Masonite currently has approximately 14,000 employees in 16 countries. The company made a profit of US$107 million in 2003 and in the first nine months of 2004 had made a profit of US$100 million.

The company has turned 18 consecutive quarters of profit growth, fuelled by the US housing boom based on a low interest rate environment.

Commenting on the transaction, KKR's Paul Raether said in a statement: “Masonite is a well-managed, well-positioned, innovative company with a global customer base. We expect Masonite to continue its expansion as a leading manufacturer of door products.”

The transaction marks the close of an acquisitive year for KKR. The firm has completed sizeable deals in the US and Europe, acquiring US satellite operator PanAmSat for $3.55 billion in April and Dutch retailer Vendex in June for €1.4 billion.

The firm revealed in October that it had returned $9 billion in cash to its limited partners over the past 18 months.

In November the firm announced that Johannes Huth would assume control of KKR’s European operation following the departure of Ned Gilhuly back to the firm’s Californian office.