Masco Corporation, the US based mega company that until recently owned the UK Window Group has announced that it has signed a “definitive agreement” to sell its cabinetry business.
This is the statement they released:
Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, has entered into a definitive agreement to sell Masco Cabinetry to ACProducts, Inc., a manufacturer of cabinetry products owned by American Industrial Partners, for $1.0 billion, consisting of $850 million in cash at closing and preferred stock issued by a holding company of the buyer with a liquidation preference of $150 million. The preferred stock will have a coupon of 8 percent, increasing to 10 percent in the third year.
The agreement contains customary representations, warranties, and covenants. The closing of the sale is expected to occur during the first quarter of 2020, subject to customary closing conditions and regulatory review.
Masco Corporation own over a dozen companies, but as of late have been regularly offloading certain brands. They have recently completed the sale of Milgard Windows & Doors and of course the UK Window Group just recently.
The size of the US sales dwarfs the values involved with the UK companies they have sold. As you would naturally imagine given the sheer size of the American market compared to ours. Milgard was sold for $725m (£563m) to MI Windows and doors. In contrast, the entire UK fenestration sector is value between £4-5bn.
This is how ACProducts Inc announced the news:
Cabinet manufacturer ACProducts Inc. has entered an agreement to acquire Masco Cabinetry, a division of Masco Corp.
With over 70 years of manufacturing experience and such well-known brands as KraftMaid®, Merillat®, Quality CabinetsTM and Cardell®, Masco Cabinetry has supplied cabinetry for builders, dealers and home centers alike, offering competitive cabinetry in key customer channels. The acquisition of Masco Cabinetry further expands the product offering and manufacturing capabilities of ACPI as a whole, creating a quite robust domestic cabinetry portfolio.
“We continue to be laser-focused in our commitment to growth in this dynamic cabinetry industry,” stated Larry Denbrock, president and CEO of ACPI. “We understand the market needs and are proud to offer high-quality domestic cabinetry to our customers in all channels and at all customization levels and price points. Masco Cabinetry is the logical choice to help us further execute ACPI’s business promise: high-quality cabinetry at a great value, and peace of mind for our customers.”
Tom Samanic, chief commercial officer of ACPI, said, “We proudly welcome Masco Cabinetry’s associates to the ACPI family. This is a momentous day for ACPI as we continue to focus on offering the most diverse and balanced cabinet offering in North America. Each of our brands is targeted to most effectively serve their respective channel segments and we look forward to augmenting and expanding upon our brands’ strong value propositions as a result of this transformative acquisition.”
Does Masco intend to sell any more of it’s brands? Time will tell.
About Masco Corporation
Masco Corporation is today one of the world’s largest manufacturers of brand- name products for the home improvement and new home construction markets.
Community involvement and good citizenship are important parts of the Masco corporate creed; and through its Foundation, the Company has demonstrated its commitment to a variety of arts, cultural and housing-based organizations, such as Habitat for Humanity, serving the communities in which its companies and employees reside.
About Masco Cabinetry
Masco Cabinetry manufactures three nationally recognized cabinetry brands, KraftMaid®, Merillat® and QualityCabinets®. Our company has manufacturing plants and branches/service centers located throughout the United States. Offering an unmatched selection of stylish, high-quality products at a variety of price levels, Masco Cabinetry brands are favored by builders, dealers, distributors and home centers throughout North America. A leader in environmental stewardship, Masco Cabinetry products have been granted an Environmental Stewardship Program certificate by the Kitchen Cabinet Manufacturers Association. The company is a division of Masco Corporation (NYSE: MAS), of Taylor, Mich., one of the world’s largest manufacturers of brand name consumer products for the home and family.
About ACProducts Inc
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