Livonia-based Masco Corp. said it will pursue the sale of its cabinetry and windows businesses following a strategic review of operations to find ways to best deliver long-term value to shareholders.
“We have determined that pursuing the sale of Masco Cabinetry, Milgard Windows and UK Window Group in three separate transactions is the most appropriate path forward to accomplish this value creation,” Masco CEO Keith Allman said in a statement. "We expect that the sales of these businesses will be concluded in approximately six to nine months, assuming that each of these transactions can be completed on acceptable terms and conditions."
“Over the past five years, we have executed on our strategy to reduce our cyclicality by increasing our exposure to the repair and remodel segment of the housing market,” Allman added. “This began with the spin-off of our installation services business and continued with a focus on improving the operations of our cabinetry and windows businesses. The strategic actions we are announcing today will complete the process of reducing our exposure to the new construction segment of the market and position us to focus on our less cyclical plumbing products and decorative architectural products businesses going forward."
For 2018, the cabinetry products and windows and other specialty products segments on a combined basis reported $1.7 billion in net sales, $120 million in operating profit and $161 million in adjusted EBITDA.