ACProducts to acquire US cabinet manufacturer Masco Cabinetry for $1bn

ACProducts (acpi) has agreed to acquire Masco Cabinetry from Masco Corporation, a Michigan-based manufacturer of branded home improvement and building products, for $1.0 billion.

Headquartered in Ann Arbor, Masco Cabinetry is engaged in the manufacturing and sales of semi-custom, stock and value-priced assembled cabinetry for storage, kitchen, bath, home office and home entertainment applications in a wide variety of styles and price points to meet consumer preferences.

Masco Cabinetry manufactures three cabinetry brands across the US in the form of KraftMaid, Merillat, Cardell, and QualityCabinets. The company is said to have manufacturing plants and branches and service centers throughout the US.

The KraftMaid cabinetry products are primarily sold to dealers and home center retailers, while the Cardell cabinetry products are exclusively sold to Menards. On the other hand, the Merillat and Quality Cabinets products are mainly sold to dealers and homebuilders for home improvement as well as new home construction.

ACProducts to acquire US cabinet manufacturer Masco Cabinetry. Photo courtesy of StockSnap from Pixabay.

The buyer of Masco Cabinetry – ACProducts, which is owned by American Industrial Partners, is a manufacturer of cabinetry products.

Joe Gross – President of Masco Cabinetry said: “We could not have asked for a better partner than acpi. Together, our complementary brands are uniquely positioned to meet the diverse product and service needs of all channels of the residential cabinet industry. Our 4,000 associates are extremely excited to join the acpi family and continue to provide the best value and solutions to all of our customers.”

According to American Industrial Partners, the rich history of Masco Cabinetry in the kitchen and bath cabinetry field makes it a perfect addition to the ACProducts family. The private equity firm also said that the acquisition will enable ACProducts to provide competitive cabinetry in key customer channels and will further grow its product offering and manufacturing capabilities as a whole.

Larry Denbrock – President and CEO of ACProducts said: “We continue to be laser focused in our commitment to growth in this dynamic cabinetry industry. 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 brand promise: high-quality cabinetry at a great value, and peace of mind for our customers. We are excited about the opportunities that will come to our customers and the market as a result of this acquisition.”

As per the terms of the deal, ACProducts will pay $850 million in cash at the time of closing plus $150 million worth shares.

ACProducts’ financial advisors for the transaction are Barclays and Goldman Sachs & Co., while its legal advisors are Ropes & Gray and Baker Botts.

Subject to standard closing conditions, the acquisition is likely to be wrapped up by the end of Q1 2020.