Masco Corporation (NYSE: MAS), Livonia, Michigan, maker of KraftMaid and Merillat cabinets, said Friday it has entered into a definitive agreement to sell Masco Cabinetry to ACProducts, Inc. (acpi), The Colony, Texas-based 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 closing of the sale is expected to occur during the first quarter of 2020, subject to customary closing conditions and regulatory review.

“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,” stated Larry Denbrock, president and CEO at acpi. “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.”

Tom Samanic, chief commercial officer at acpi, commented, “We proudly welcome Masco Cabinetry’s associates to the acpi family. This is a momentous day for acpi as we continue to focus on offering the most diverse and balanced cabinet offering in North America. Each of our brands is targeted to serve a specific channel segment and we look forward to expanding on our brands’ strong value propositions as a result of this acquisition.”

Joe Gross, president of Masco Cabinetry added, “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.”