Platinum Equity, the private equity firm of Detroit Pistons owner Tom Gores, announced it has entered into a definitive agreement to acquire The Cabinetworks Group in Ann Arbor from American Industrial Partners, GIC, and other equity holders.
Cabinetworks, the largest independently owned manufacturer and distributor of kitchen and bath cabinets in the United States, offers such brands as KraftMaid, Medallion, Smart, Merillat, Yorktowne, Echelon, Advanta, Studio Full Access, Master WoodCraft, and Cabinets 2000.
The company, which has 8,000 employees and was brought together last year when American Industrial Partners acquired Masco Cabinetry from Masco Corp. in Livonia for $1 billion, produces both framed and frameless cabinetry. It operates out of 14 assembly plants and three component facilities, and serves customers through a multi-channel approach including sales to dealers, home centers, and distributors across the country.
“Cabinetworks has a comprehensive portfolio of highly-respected, fast-growing brands, a strong leadership team, and a proven track record for growth,” says Jacob Kotzubei, a partner at Platinum Equity. “The company’s leading position in the cabinets space, combined with Platinum Equity’s operational toolkit and M&A resources, make Cabinetworks a great fit for our portfolio.”
Other companies Platinum Equity previously has invested in within the building products ecosystem include Interior Logic Group, the largest national provider of interior design and finish solutions for the homebuilding industry, and PrimeSource, a national distributor of specialty building materials including fasteners serving the new-construction and remodeling markets.
The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2021. Citi served as sole M&A advisor to Platinum Equity. Kirkland & Ellis is serving as legal advisor to Platinum Equity. BofA Securities will lead the debt financing for Platinum Equity and Cabinetworks.
BofA Securities and Barclays served as financial advisors to Cabinetworks. Ropes & Gray is serving as legal advisor to American Industrial Partners.
Founded in 1995 by Gores, Platinum Equity is a global investment firm with more than $25 billion of assets under management and a portfolio of approximately 40 operating companies. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market.
Platinum Equity, which is based in Los Angeles, specializes in mergers, acquisitions, and operations among a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, building products, media and entertainment, technology, telecommunications, and other industries. Over the past 25 years Platinum Equity has completed more than 300 acquisitions.