KraftMaid sold for $1 billion
Company operates facilities in Middlefield, Orwell
MIDDLEFIELD — The company that owns kitchen and bathroom cabinet maker KraftMaid, which has manufacturing facilities in Ashtabula and Geauga counties, has sold the division to a Texas company.
Friday’s announcement by Michigan-based Masco Corp. of the $1 billion sale to ACProducts Inc. — the fourth-largest independently owned manufacturer and distributor of cabinets in the U.S. — comes about six months after Masco made public its intent to sell its cabinetry and window divisions.
“Together, our complementary brands are uniquely positioned to meet the diverse product and service needs of all channels of the residential cabinet industry. Our 4,000 associates are excited to join the ACPI family and continue to provide the best value and solutions to all of our customers,” said Joe Gross, president of Masco Cabinetry.
KraftMaid operates two production facilities in Middlefield, one on state Route 608 and the other on Industrial Parkway, that employ about 2,000 people. A third local KraftMaid plant is on Grand Valley Avenue in Orwell, but it’s unclear how many are employed at the facility.
The acquisition expands ACProducts Inc.’s product offerings and manufacturing capabilities, “creating the most robust domestic cabinetry portfolio in the industry,” a release from the company states.
“This is a momentous day for ACPI as we continue to focus on offering the most diverse and balanced cabinet offerings in North America,” said Tom Samanic, ACProducts’ chief commercial officer. “Each of our brands is targeted to most effectively serve their respective channel segments, and we look forward to augmenting and expanding upon our brands’ strong value propositions as a result of this transformative acquisition.”
The sale consists of $850 million in cash at closing and preferred stock issued by a holding company of the buyer with a liquidation preference of $150 million. The preferred stock will have a coupon of 8 percent, increasing to 10 percent in the third year, according to Masco.
It is expected to close in the first quarter of 2020.
Masco earlier this year sold off its Milgard Windows and Doors division to MI Windows and Doors LLC for about $725 million.
It announced its intent to sell the divisions in June. Then the company stated the sell-off was happening as it increased exposure in the repair and remodel segment of the house market and lessened exposure in new construction.
KraftMaid cabinets were primarily sold to dealers and home center retailers for use in multiple applications, including kitchen, bath and home office.