PE Firms Bain and AIP Among the Bidders for Masco’s Cabinet-Making Unit
PE Firms Bain and AIP Among the Bidders for Masco’s Cabinet-Making Unit
(Bloomberg) -- Private equity firms Bain Capital and American Industrial Partners are among bidders for Masco Corp.’s cabinetry business, according to people with knowledge of the matter.
Clearlake Capital Group LP and W.W. Grainger Inc. also have made it to the second round of bidding for the Masco unit, which is expected to fetch about $1.2 billion, said the people, who asked not to be identified because they weren’t authorized to speak publicly.
Masco’s cabinetry unit reported $488 million in sales and $63 million in earnings before interest, taxes, depreciation and amortization for the first half of the year, according to company reports.
An agreement on a sale might not be reached and Masco could decide to keep the business, the people said.
Shares of Masco on Tuesday rose as much as 3% in New York trading Tuesday. They closed up 2.1% at $39.64, giving the company a market value of $11.47 billion.
Representatives for Bain, Grainger and Clearlake declined to comment. Representatives for Masco and AIP didn’t respond to requests for comment.
Masco, whose origins date back to 1929, announced in March that it had hired advisers to look at strategic options for both its cabinet and windows division.
After selling several business lines over a seven-year period, the company began adding to its product lines through acquisitions in 2015, according to data compiled by Bloomberg. It bought plumbing products maker Mercury Plastics Inc. in 2017, followed by ceiling fan manufacturer L.D. Kichler Co. in 2018 for about $550 million, according to its website and the Bloomberg data.
Masco, based in Livonia, Michigan, offers 300 styles of kitchen and bath cabinets for under four brands: Cardell, KraftMaid, Merillat and QualityCabinets, according to its website. Its products also include Behr paints, as well as lighting and hardware.
To contact the reporter on this story: Kiel Porter in Chicago at kporter17@bloomberg.net
To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Michael Hytha, Matthew Monks
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