LIVONIA, Mich.--(BUSINESS WIRE)--
Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers
of branded home improvement and building products, announced today the
signing of a definitive agreement to acquire The L.D. Kichler Co.
(“Kichler Lighting”), a leading developer of decorative residential and
light commercial lighting products, ceiling fans and LED lighting
systems across both consumer and professional distribution channels.
“We are excited about the prospects of expanding Masco’s reach into the
fragmented $6 billion U.S. residential lighting industry,” said Masco’s
President and CEO, Keith Allman. “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,” continued Allman.
Based in Cleveland, Ohio, Kichler Lighting had revenues of approximately
$450 million in 2017 and employs approximately 700 people worldwide. The
transaction is expected to close in the first quarter of 2018, subject
to customary closing conditions and regulatory review, and will be
funded with cash on hand. Masco intends to report the financial results
of Kichler Lighting in its Decorative Architectural Products segment.
Additionally, Masco announced that it acquired Mercury Plastics, Inc.
(“Mercury”) in the fourth quarter of 2017. Mercury is a plastics
processor and manufacturer of water handling systems for appliance and
faucet applications, as well as other highly engineered plumbing
products, tubing, and assemblies. Based in Middlefield, Ohio, Mercury
had revenues of approximately $45 million in 2017 and employs
approximately 300 people. 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,” said 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 February
8, 2018,” concluded Allman.
About Masco
Headquartered in Livonia, Michigan, Masco Corporation is a global leader
in the design, manufacture and distribution of branded home improvement
and building products. Our portfolio of industry-leading brands includes
Behr® paint; Delta® and Hansgrohe® faucets, bath and shower fixtures;
KraftMaid® and Merillat® cabinets; Milgard® windows and doors; and Hot
Spring® spas. We leverage our powerful brands across product categories,
sales channels and geographies to create value for our customers and
shareholders. For more information about Masco Corporation, visit www.masco.com.
Safe Harbor Statement
This press release contains statements that reflect our views about our
future performance and constitute “forward-looking statements” under the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as “believe,” “anticipate,”
“appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,”
“expect,” “assume,” “seek,” “forecast,” and similar references to future
periods. Our views about future performance involve risks and
uncertainties that are difficult to predict and, accordingly, our actual
results may differ materially from the results discussed in our
forward-looking statements. We caution you against relying on any of
these forward-looking statements.
Risks and uncertainties include, among other things, the expected
closing of the Kichler transaction and the expected benefits and
synergies of both acquisitions, including the expected impact on future
financial and operating results and post-acquisition plans and
intentions. Our future performance may also be affected by the levels of
home improvement activity and new home construction, our ability to
maintain our strong brands and to develop and introduce new and improved
products, our ability to maintain our competitive position in our
industries, our reliance on key customers, our ability to achieve the
anticipated benefits of our strategic initiatives, our ability to
improve our under-performing U.S. window business, the cost and
availability of raw materials, our dependence on third party suppliers,
and risks associated with international operations and global
strategies. These and other factors are discussed in detail in Item 1A,
“Risk Factors” in our most recent Annual Report on Form 10-K, as well as
in our Quarterly Reports on Form 10-Q and in other filings we make with
the Securities and Exchange Commission. The forward-looking statements
in this press release speak only as of the date of this press release.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict all
of them. Unless required by law, we undertake no obligation to update
publicly any forward-looking statements as a result of new information,
future events or otherwise.
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Source: Masco Corporation