Masco Corp., a manufacturer of branded home improvement and building products based in Livonia, today announced the signing of a definitive agreement to acquire The L.D. Kichler Co., a developer of decorative residential and light commercial lighting products, ceiling fans, and LED light systems for consumer and professional distribution channels.
The transaction is expected to close in the first quarter of 2018 and is subject to customary closing conditions.
“We are excited about the prospects of expanding Masco’s reach into the fragmented $6 billion U.S. residential lighting industry,” says Keith Allman, Masco’s president and CEO. “Kichler Lighting is a strong strategic fit with our focus on building products where brand, innovation and strength of distribution provide a competitive advantage. Kichler’s products share many of the same customers as numerous other Masco brands, and will complement our current product offering while strengthening our relationships with these customers.”
Based in Cleveland, Kichler Lighting had revenue of approximately $470 million in 2017 and employs 700 people worldwide. Though terms of the agreement were not disclosed, Masco intends to report the financial results of Kichler Lighting in its Decorative Architectural Products segment.
Masco also today announced the acquisition of Mercury Plastics Inc. in the fourth quarter of 2017. Mercury is an Ohio-based plastics processor and manufacturer of water handling systems for appliance and faucet applications, as well as other highly engineered plumbing products, tubing, and assemblies. The company had revenue of approximately $45 million last year. Masco intends to report the financial results of Mercury in its Plumbing Products segment.
“We are extremely pleased to welcome the Kichler Lighting and Mercury teams to the Masco family,” adds Allman. “We believe that, because of our rigorous acquisition process and patience, these acquisitions will be accretive to our earnings in 2018 and will demonstrate Masco’s ability to deliver on our strategic initiatives to create significant shareholder value. We expect to provide a more in-depth update on these transactions on our fourth quarter earnings conference call on Feb. 8.