LIVONIA—Masco Corp., (NYSE: MAS), the manufacturer of home improvement and building products, announced it had entered into an agreement to sell its Masco Cabinetry business to ACProducts Inc., a manufacturer of cabinetry products owned by American Industrial Partners, for $1 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.
Masco said 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 Cabinetry will be accounted for as discontinued operations for the fourth quarter and full year 2019.
Masco’s brand portfolio includes Behr paint; Delta and Hansgrohe faucets, bath and shower fixtures; KraftMaid and Merillat cabinets; Kichler decorative and outdoor lighting; and HotSpring spas. More at www.masco.com.