Livonia’s Masco Corp., a manufacturer of home improvement and building products, has entered into a definitive agreement to sell Masco Cabinetry to ACProducts Inc. in Texas, a manufacturer of cabinetry products, for $1 billion.
ACProducts is owned by American Industrial Partners in New York. The deal consists 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 sale’s closing expected to occur during the first quarter of 2020.
Masco Cabinetry will be accounted for as discontinued operations for the fourth quarter and full year 2019. With the change, its normalized annual tax rate is expected to be 26 percent compared to its previously expected rate of 25 percent. Its anticipated earnings per share from continuing operations for the full year is expected to go from $2.12 to $2.16 per share on a reported basis and $2.19 to $2.23 per share on an adjusted basis.
Masco Corp.’s brands include Behr paint, Delta and Hansgrohe faucets and bath and shower fixtures, KraftMaid and Merillat cabinets, Kichler decorative and outdoor lighting, and HotSpring spas.