Masco completed the sale of its Masco Cabinetry business to ACProducts. Terms of the sale include $850 million in cash at closing and preferred stock issued by a holding company of the buyer with a liquidation preference of $150 million, according to a news release. Masco Cabinetry and ACProducts have come together to form Cabinetworks Group.
Ann Arbor, Mich.-based Masco Cabinetry manufactures and sells semicustom, stock, and value-priced assembled cabinetry for kitchen, bath, storage, home office, and home entertainment applications. Masco Cabinetry’s KraftMaid and Cardell products are sold primarily to dealers and home centers and retailers and its Merillat and QualityCabinets products are primarily sold to dealers and home builders for the renovation and new construction market.
Cabinetworks Group will offer a “highly diverse” product portfolio of framed and frameless cabinetry that spans from value-priced to custom options. The name Cabinetworks reflects the two company’s dedication to their “one and only collective purpose” of building cabinets, president and chief revenue officer Larry Denbrock wrote in a letter to business partners.
The sale of Masco’s cabinetry business follows the sale of its windows and doors business in late 2019. Masco sold its Milgard Windows and Doors business to MI Windows and Doors for $725 million in October 2019.
Masco announced its intentions of selling both its window and door and cabinetry divisions in June 2019. After a strategic review of both businesses, Masco concluded the sale of Masco Cabinetry and Milgard Windows and Doors was “the most appropriate path forward.” The decision to sell came from wanting to minimize its exposure to the new construction market, and zero-in on its “less cyclical” plumbing and decorative architectural products business, Masco president and CEO Keith Allman said in a news release in June.
Livonia, Mich.-based Masco’s brands include Behr paint, Delta and Hansgrohe faucets, bath, and shower fixtures, KraftMaid and Merillat cabinets, Kichler decorative and outdoor lighting, and HotSprings spas.
