Fortune Brands agrees to sell Fiberon decking unit to Inteplast for $160 million
The company also expects an additional non-cash impairment of $175 million to $205 million, and the sale is expected to close within 60 days.
Key takeaways
- Fortune Brands Innovations, Inc. (FBIN) said in a filing it agreed on Oct. 15 to sell its Fiberon decking business to a subsidiary of Inteplast Group Corporation for $160 million in cash. It expects a non-cash impairment of $175 million to $205 million and closing within 60 days, subject to regulatory approval.
Fortune Brands Innovations, Inc. (FBIN) agreed to sell its Fiberon composite decking business to a subsidiary of Inteplast Group Corporation for $160 million in cash, the company said in a regulatory filing on Thursday.
The company signed the definitive purchase agreement on Thursday. The sale is subject to regulatory approval and is expected to close within 60 days.
The company said the sale followed a comprehensive sales process it started as part of a strategic review of Fiberon that it had previously announced.
The company said the decision reflects its commitment to active portfolio management and capital allocation discipline. It also said the sale is intended to concentrate its resources in its highest-return opportunities.
The Fiberon asset group sits within the company's Outdoors segment, according to the filing.
The buyer is a subsidiary of Inteplast Group Corporation. The filing does not name the subsidiary.
Jefferies LLC is serving as the company's exclusive financial advisor. Sidley Austin LLP is serving as its legal advisor.
The company recorded a long-lived asset impairment of $221.2 million as of June 27, 2026, on the Fiberon asset group. The test was triggered by the advancement of the strategic review, according to the filing.
That charge reduced the carrying value of the Fiberon customer relationship intangible asset by $71.3 million. It reduced property and equipment by $149.9 million.
On Thursday the company determined that an additional charge for impairment of the Fiberon asset group is required under U.S. generally accepted accounting principles. The determination followed the purchase agreement.
The company expects an additional non-cash impairment charge in the range of approximately $175 million to $205 million relating to the Fiberon business.
The filing does not state an expected gain or loss on the sale. The press release announcing the agreement was furnished as Exhibit 99.1 to the filing, and it contains no executive quote.