Tampa door giant sees future beyond inside

In mid-October, Tampa-based Masonite International acquired Fleetwood Aluminum Products for $285 million in cash.

Fleetwood manufactures luxury residential items such as aluminum-framed glass doors and windows, Masonite officials say. For the Tampa-based door maker, the acquisition of Fleetwood seemed logical.

Fleetwood's products include multi-slide and pocket-glass patio doors, pivot and hinged glass entry doors, and folding glass door wall systems, as well as accompanying premium window products, Masonite says.

On Tuesday, during its investor conference call and presentation of its third quarter earnings, Masonite officials spelled out their plans for Fleetwood, which is based in Corona, California.

Howard Heckes, Masonite president and CEO, says Masonite is targeting luxury buyers and the selling of materials for outdoor living spaces, such as patios, with the Fleetwood buy.

"In the luxury residential glass door markets, Fleetwood is a leader that is well known among architects and builders," Heckes told investors.

Heckes says when evaluating Fleetwood, Masonite saw several compelling attributes.

First, Fleetwood had a business strategy of bringing innovative door systems to the residential markets.

Second, the acquisition allows Masonite "to more effectively address the large patio door market and indoor-outdoor living trend, but with a focus on premium aluminum framed glass segment, which we view as more differentiated than the mainstream sliding vinyl patio door segment," Heckes told the conference call.

And third, Masonite wanted to add high value to its range of doors "that do more," Heckes says.

With Fleetwood, Masonite gets a 200,000-square-foot manufacturing facility in California, about 350 new employees, 200 associated dealers and Fleetwood's revenues. About 70% of Fleetwood's revenues come from door systems and 30% from matching glass walls and window systems, Heckes says.

Heckes says that in 2024, Fleetwood will contribute $150 million in net sales and $35 million in earnings. The current management team at Fleetwood will continue to operate the business independently, Heckes says.

Masonite reported $702 million in quarterly sales for the period ending Oct. 1, down 3.4% from the same quarter in 2022. Masonite reported $2.17 billion in revenues for the first nine months of the year, which is down 2% from the same time frame in 2022.