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Masco Cabinetry: Deal to close in late February

28.02.2020 − 

Masco intends to complete a deal negotiated in mid-November 2019 to sell its Cabinetry Products division by the end of February. The new owner is the kitchen and bathroom furniture manufacturer ACProducts (acpi), which is owned by American Industrial Partners (AIP). The negotiated purchase price of roughly US$1.0bn, which breaks down into a cash payment of about US$850m and new shares with a total volume of approximately US$150m, should yield net proceeds of roughly US$645m after taxes and expenses. Masco plans to spend about US$500m-600m of this sum to buy back additional shares a short time after closing.

Masco took a similar approach during the previous sale of US window and door activities doing business as Milgard Windows & Doors to MI Windows & Doors. The sale agreement was signed in late September and the deal closed on 7 November. The purchase price stood at about US$725m, with net proceeds reaching US$560m. Masco spent US$456m to buy back shares and about US$200m to pay liabilities due in early 2020 with these net proceeds and additional resources from cashflow.

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