Masco Corporation Announces Signing of Definitive Agreement to Sell Masco Cabinetry
Masco Corporation, 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 Cabinetry will be accounted for as discontinued operations for the fourth quarter and full year 2019. With this change, our normalized annual tax rate is now expected to be 26% compared to our previously expected rate of 25%, and our anticipated earnings per share from continuing operations for the full year is expected to be $2.12 to $2.16 per share on a reported basis, and $2.19 to $2.23 per share on an adjusted basis. See Exhibit A for GAAP reconciliations.
Headquartered in Livonia, Mich., Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry-leading brands includes Behr® paint; Delta® and Hansgrohe® faucets, bath and shower fixtures; KraftMaid® and Merillat® cabinets; Kichler® decorative and outdoor lighting; and HotSpring® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com.
David Chaika – Vice President, Treasurer & Investor Relations – email@example.com – (313) 792-5500
Source: Masco Corporation