Masco Corporation (NYSE: MAS) said Friday that it will explore "strategic alternatives" for its cabinetry and window businesses.
“Over the past five years, we have been executing our strategy to drive the full potential of our core businesses, leverage opportunities across our organization, and actively manage our portfolio to drive shareholder value,” said Keith Allman, Masco’s president and CEO. “Our Cabinetry and Window businesses are leaders in their respective markets and are well positioned to continue their growth. However, we believe we can potentially drive greater shareholder value by exploring strategic alternatives for these businesses. We expect to complete this review by the end of June.”
For 2018, the Cabinetry Products and Windows and Other Specialty Products segments on a combined basis reported $1.7 billion in net sales, $120 million in operating profit and $161 million in adjusted EBITDA), which represented 20% of Masco’s consolidated net sales, 10% of consolidated operating profit, and 11% of consolidated adjusted EBITDA.
Masco Cabinetry, headquartered in Ann Arbor, Michigan, manufactures and sells semi-custom, stock and value-priced assembled cabinetry for kitchen, bath, storage, home office and home entertainment applications in a broad range of styles and price points to address consumer preferences. Masco Cabinetry’s KRAFTMAID® and CARDELL® products are sold primarily to dealers and home center retailers, and its MERILLAT® and QUALITY CABINETS™ products are sold primarily to dealers and home builders for both home improvement and new home construction. For 2018, Masco reported net sales of its Cabinetry Products segment of $950 million, operating profit of $86 million and EBITDA of $99 million.
Masco’s two window businesses are Milgard Windows and Doors, headquartered in Tacoma, Washington, and UK Window Group, headquartered in Wales in the United Kingdom. Milgard manufactures and sells vinyl, fiberglass and aluminum windows and patio doors under the MILGARD® brand name for home improvement and new home construction, principally in the western United States. The UK Window Group manufactures and sells vinyl windows, composite doors, related products and components under several brand names, including DURAFLEX™, GRIFFIN™, PREMIER™, PHOENIX DOORS™ and EVOLUTION™. For 2018, Masco reported net sales of its Windows and Other Specialty Products segment of $755 million, operating profit of $34 million and adjusted EBITDA of $62 million (excluding $5 million of rationalization charges).
Headquartered in Livonia, Michigan, Masco Corporation designs, manufactures and distributes branded home improvement and building products. The portfolio Behr® paint; Delta®and Hansgrohe® faucets, bath and shower fixtures; KraftMaid® and Merillat® cabinets; Milgard® windows and doors; Kichler® decorative and outdoor lighting; and HotSpring® spas.
