TAYLOR, MI – Masco Corp., the Taylor, MI-based manufacturer of home improvement and building products, has entered into an agreement to sell its cabinet division, Masco Cabinetry, a unit that includes KraftMaid, Merillat, QualityCabinets and Cardell Cabinetry.
Under the terms of the sale, announced last week, Masco’s cabinet unit – the third-largest manufacturer in the U.S., behind only MasterBrand Cabinets and American Woodmark – was acquired for $1 billion by ACProducts, Inc. (ACPI), a cabinet manufacturer owned by American Industrial Partners (AIP). The deal, according to the companies, includes $850 million at closing, along with preferred stock at a liquidation preference of $150 million issued by a holding company for the buyer. Closing is expected during the first quarter of 2020, corporate officials added.
The publicly traded Masco Corp. reported net sales of $950 million, and an operating profit of $86 million, for its cabinet division in 2018. The unit manufactures and sells semi-custom, stock and RTA cabinetry for kitchen, bath and other residential applications. KraftMaid and Cardell products are sold primarily to kitchen/bath dealers and home center retailers. Merillat and QualityCabinets products are sold primarily to dealers and home builders in both the residential-remodeling and new-construction sectors. The division also includes One Two One Cabinetry, an Ann Arbor, MI-based dealer-exclusive line.
Masco had announced earlier this year that it intended to sell both its cabinet and windows businesses prior to the end of 2019 – a decision, the company said, that was spurred by a desire to minimize its exposure to the new-construction sector. The company said at the time that it hoped to focus on its less cyclical plumbing and decorative architectural products businesses.
After announcing its intent to sell both divisions in June, Masco sold its Milgard Windows and Doors unit in October to MI Windows and Doors, a major supplier of vinyl and aluminum windows and patio doors. Masco’s remaining brand portfolio includes Delta and Hansgrohe faucets, bath and shower fixtures; Behr paint; Kichler decorative and outdoor lighting, and HotSpring spas.
ACPI’s four divisions include Master WoodCraft Cabinetry, Smart Cabinetry, Cabinets 2000 and acpi, which markets its products under the Advanta Cabinets, Echelon Cabinetry and Serenade Cabinetry brands. AIP’s portfolio, in addition to ACPI, includes flooring manufacturer AHFP, which markets under the brand names of Armstrong, Bruce, Capella, HomerWood, Robbins and T. Morton.
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