Masonite buys Door-Stop International

Masonite buys Door-stop

The rumours and speculation are finally over, the grapevine has been whispering for some time that one of Composite Door Prices favoured suppliers Door-stop International was on the verge of major changes, the word to those who were in the know was that first a Middle Eastern, and then a Far Eastern buyer were in the frame to acquire the company. However with today’s Nasdaq announcement it’s pretty clear all the speculation was heading in the wrong direction as US based company Masonite International Corporation have announced that they have taken over the 100% acquisition of Door stop as revealed in a the NASDAQ press release.

Masonite are a long standing company having formed in 1925 as manufacturers of interior and exterior doors for the residential new construction; the residential repair, renovation and remodelling; and the non-residential building construction market. The company has now grown to a position where it serves more than 7000 customers in 80 countries. 

Masonite already operate in the UK through their Premdor division which is based in a facility in Barnsley where the local news paper the Star has already gone to press over this development and what impact it may have.

The purchase price for 100% of the outstanding shares of Door stop is stated as approximately US $50 million (£30 million), but as of yet there appears to be little or no confirmation as to the impact that the acquisition will have upon the current 200 employees who work at the Door-Stop facility other than the statement of Mr Gary Dutton, Door-Stop Chairman who said “We are pleased to see this transaction completed and are excited about the opportunities it will bring our employees and customers.”

So a fantastic achievement by the management of Door-Stop, in less than 6 years, £30 million pound profit! This story truly shows that with enough time, money and passion; you can not only reinvent the market place with deliveries in as little a 3 days, but you can also make a massive profit!

We’ve attached is a summary taken from Masonite’s own web site of the company history. The growth of Masonite has been dramatic but they have  also suffered and survived the same economic pressures as the UK as identified in the below history of the company:

1924:   William H. Mason changed the building materials industry forever by inventing a way to convert wood chips into an economical and highly effective building material, high-density fiberboard

1925:  On September 1, 1925, the corporation was formed and named Mason Fibre Company

1928:  The Company’s name was changed to Masonite Corporation

1930s/1940s:  Masonite grows and expands globally into almost every corner of the world.

1955:  Premdor Corporation (Masonite’s current parent company) enters into the door business

1960:  The Masonite Innovation Center (formerly known as the John M. Coates Technical Center) was built by Masonite in recognition of the importance of research and development. Its sole purpose was, and continues to be, the development of new products and process innovations

1972:  Masonite enters the door business as a supplier of interior facings and other components to the door industry.

1989:  Premdor and Century Doors (two of the major door manufacturers in Canada) merge, creating one of the largest door manufacturers in North America

1990s:  Premdor expands its global footprints by acquiring or building door manufacturing facilities in US, Ireland, Canada, Mexico, UK, France and Israel.

2001:  New “Masonite” formed when Premdor purchases Masonite from International Paper to create a vertically integrated company.

2002:  Masonite sells Craftmaster Manufacturing Inc. (as required under a 2001 U.S. government voluntary consent decree related to Premdor’s purchase of Masonite).

2004:  Masonite acquires The Stanley Works residential entry door division, and buys interests in entities located in Malaysia, Republic of Czech, Poland, and Luxembourg.

2005:  Kohlberg Kravis Roberts & Co. (KKR) acquires the shares of Masonite International Corporation. KKR de-lists Masonite from the NYSE and Toronto exchanges, and Masonite becomes a privately held company.

2006/2009:  The door industry experiences the greatest decline since the Great Depression.

2009:  Masonite and its lenders voluntarily restructure the company, and Masonite emerges from a pre-negotiated bankruptcy as a private entity with a large ownership base and virtually no debt.

2010:  Masonite buys assets of two premier interior flush door manufacturers in the United States, and enters the door market in India by acquiring select assets of three leading door manufacturers. Masonite also establishes its European office in Vienna, Austria.

2011:  Masonite successfully completes a $275 million bond offering, and enters into an asset-based loan with committed capital of $125 million which allows Masonite to continue to expand and to right-size its capital structure.

2011:  Masonite acquires Marshfield DoorSystems, Inc., a leading provider of doors and door components for commercial and architectural use.

2014:  Masonite acquires Door-Stop International for $50 million

We look forward to the new innovations a company like Masonite could bring to the composite door market place over the coming months and years.