USA - Masco Corporation, one of the world’s leading manufacturers of branded home improvement and building products, has entered into a definitive agreement to sell Masco Cabinetry to ACProducts, Inc. (acpi), a manufacturer of cabinetry products owned by American Industrial Partners, for USD 1.0 billion, consisting of USD 850 million in cash at closing and preferred stock issued by a holding company of the buyer with a liquidation preference of USD150 million.

The preferred stock will have a coupon of 8 percent, increasing to 10 percent in the third year.

The agreement contains customary representations, warranties, and covenants. The closing of the sale is expected to occur during the first quarter of 2020, subject to customary closing conditions and regulatory review.

For 2018, Masco reported net sales of its Cabinetry Products segment of USD 950 million, and operating profit of USD 86 million. The company is the third biggest cabinetmaker on the FDMC 300. Its windows and cabinetry divisions totaled USD 1.7 billion in revenue for the year.

As one of the largest manufacturers of kitchen and bath cabinetry in the world, Masco offers approximately 300 styles in more than 20 lines. From custom-assembled cabinetry to ready-to-assemble kitchen and bath cabinets Masco cabinets are produced under the Cardell, KraftMaid, Merillat and Quality brands.

Headquartered in The Colony, Texas, acpi is the 4th largest, and largest independently-owned, manufacturer and distributor of cabinets in the United States. acpi has been owned by American Industrial Partners (AIP) since October 2012. Since the purchase by AIP, acpi has grown from a single brand and plant to 14 brands and 11 manufacturing operations across Pennsylvania, Indiana, Texas, Minnesota, Colorado, Oregon, and California.