Masco Corp. Announces Intent to Sell Window Businesses

June 19th, 2019 by Editor

Masco Corp., a manufacturer of branded home improvement and building products, announced yesterday that it has concluded its strategic review of its cabinetry and windows businesses, including Milgard Windows and Doors, and will pursue the sale of those businesses.

“Since we announced the strategic review of our cabinetry and windows businesses in March, we have worked with our external advisors, our cabinetry and windows business units, and our Board of Directors to evaluate alternatives to best deliver long-term value for our shareholders,” said Keith Allman, Masco’s president and CEO. “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. 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.”

Masco’s two window businesses are Milgard Windows and Doors, headquartered in Tacoma, Wash., and UK Window Group, headquartered in Wales in the United Kingdom. Milgard manufactures and sells vinyl, fiberglass and aluminum windows and patio doors under the Milgard brand name for home improvement and new home construction, principally in the western United States. The UK Window Group manufactures and sells vinyl windows, composite doors, related products and components under several brand names, including Duraflex, Griffin, Premier, Phoenix Doors and Evolution.

For 2018, Masco reported net sales of its Windows and Other Specialty Products segment of $755 million, operating profit of $34 million and adjusted EBITDA of $62 million (excluding $5 million of rationalization charges). 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 (defined as operating profit plus depreciation and amortization expense of $36 million and excluding $5 million of rationalization charges).

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