Masco Corporation Enters Into a Definitive Agreement to Sell Kichler Lighting
Masco (NYSE: MAS) has announced a definitive agreement to sell its Kichler Lighting business to an affiliate of Kingswood Capital Management for approximately $125 million, subject to adjustments. Kichler Lighting, based in Solon, Ohio, provides decorative residential and light commercial lighting products. The transaction is expected to close by year-end, pending regulatory approvals.
Keith Allman, President and CEO of Masco, stated that Kichler has undergone transformations under Masco's ownership, improving efficiency and innovation. He believes the business has greater growth potential as part of an organization more focused on lighting. Kingswood Capital Management, the buyer, already owns Progress Lighting, another decorative lighting solutions provider.
Masco (NYSE: MAS) ha annunciato un accordo definitivo per vendere la sua attività di Kichler Lighting a un affiliato di Kingswood Capital Management per circa 125 milioni di dollari, soggetto a regolazioni. Kichler Lighting, con sede a Solon, Ohio, fornisce prodotti di illuminazione decorativa per residenze e piccoli commerciali. Si prevede che la transazione si concluda entro la fine dell'anno, in attesa delle approvazioni normative.
Keith Allman, Presidente e CEO di Masco, ha dichiarato che Kichler ha subito trasformazioni sotto la proprietà di Masco, migliorando l'efficienza e l'innovazione. Crede che l'azienda abbia un potenziale di crescita maggiore come parte di un'organizzazione maggiormente focalizzata sull'illuminazione. Kingswood Capital Management, l'acquirente, possiede già Progress Lighting, un altro fornitore di soluzioni di illuminazione decorativa.
Masco (NYSE: MAS) ha anunciado un acuerdo definitivo para vender su negocio de Kichler Lighting a una afiliada de Kingswood Capital Management por aproximadamente 125 millones de dólares, sujeto a ajustes. Kichler Lighting, con sede en Solon, Ohio, proporciona productos de iluminación decorativa para hogares y pequeños comercios. Se espera que la transacción se cierre a finales de año, sujeta a las aprobaciones regulatorias.
Keith Allman, Presidente y CEO de Masco, declaró que Kichler ha experimentado transformaciones bajo la propiedad de Masco, mejorando la eficiencia y la innovación. Cree que el negocio tiene un mayor potencial de crecimiento como parte de una organización más centrada en la iluminación. Kingswood Capital Management, el comprador, ya posee Progress Lighting, otro proveedor de soluciones de iluminación decorativa.
Masco (NYSE: MAS)는 Kichler Lighting 사업을 판매하기 위한 확정 계약을 Kingswood Capital Management의 계열사에 약 1억 2500만 달러에 체결했다고 발표했습니다. Kichler Lighting은 오하이오주 솔론에 본사를 두고 있으며, 주거용 및 소규모 상업용 장식 조명 제품을 제공합니다. 규제 승인을 대기하며 올해 말까지 거래가 마무리될 것으로 예상됩니다.
Masco의 대통령이자 CEO인 Keith Allman은 Kichler가 Masco의 소유 하에 효율성과 혁신을 개선하는 변화를 겪었다고 밝혔습니다. 그는 이 사업이 조명에 더욱 집중된 조직의 일원이 될 때 더 큰 성장 가능성이 있다고 믿습니다. 구매자인 Kingswood Capital Management는 이미 또 다른 장식 조명 솔루션 제공업체인 Progress Lighting을 소유하고 있습니다.
Masco (NYSE: MAS) a annoncé un accord définitif pour vendre son activité Kichler Lighting à une affiliée de Kingswood Capital Management pour environ 125 millions de dollars, sous réserve d'ajustements. Kichler Lighting, basé à Solon, Ohio, propose des produits d'éclairage décoratif résidentiels et pour petits commerces. La transaction devrait être finalisée d'ici la fin de l'année, sous réserve des approbations réglementaires.
Keith Allman, Président et CEO de Masco, a déclaré que Kichler a subi des transformations sous la direction de Masco, améliorant l'efficacité et l'innovation. Il pense que l'entreprise a un potentiel de croissance plus élevé en tant que partie d'une organisation davantage axée sur l'éclairage. Kingswood Capital Management, l'acheteur, possède déjà Progress Lighting, un autre fournisseur de solutions d'éclairage décoratif.
Masco (NYSE: MAS) hat eine endgültige Vereinbarung zum Verkauf seines Kichler Lighting Geschäfts an ein Tochterunternehmen von Kingswood Capital Management für etwa 125 Millionen Dollar bekannt gegeben, vorbehaltlich Anpassungen. Kichler Lighting mit Sitz in Solon, Ohio, bietet dekorative Beleuchtungsprodukte für Wohn- und Lite-Gewerbe an. Der Abschluss der Transaktion wird zum Jahresende erwartet, vorbehaltlich der regulatorischen Genehmigungen.
Keith Allman, Präsident und CEO von Masco, erklärte, dass Kichler unter der Verantwortung von Masco Transformationen durchlaufen hat, die Effizienz und Innovation verbessert haben. Er glaubt, dass das Geschäft als Teil einer Organisation mit einem stärkeren Fokus auf Beleuchtung ein größeres Wachstumspotenzial hat. Kingswood Capital Management, der Käufer, besitzt bereits Progress Lighting, einen weiteren Anbieter dekorativer Beleuchtungslösungen.
- Sale of Kichler Lighting for approximately $125 million
- Expected completion of the transaction by year-end
- Potential for greater shareholder value through the sale
- Divestiture of a business unit, potentially reducing revenue streams
Insights
The sale of Kichler Lighting for
Investors should note that this sale might slightly reduce Masco's revenue in the short term but could potentially improve profitability margins if Kichler was underperforming. The key question is how Masco plans to utilize the proceeds - whether for debt reduction, share buybacks, or reinvestment in higher-growth areas. This move aligns with the broader trend of large conglomerates divesting non-core assets to enhance shareholder value.
The lighting industry is undergoing significant changes, driven by LED technology and smart home integration. Masco's decision to sell Kichler Lighting to Kingswood Capital Management, which already owns Progress Lighting, indicates a consolidation trend in the decorative lighting sector. This merger could create a stronger competitor in the market, potentially challenging other players like Signify (formerly Philips Lighting) and Acuity Brands.
For Masco, exiting this competitive space allows it to focus on its stronger brands like Behr paint and Delta faucets. The lighting market's shift towards more specialized, tech-integrated products might have influenced this decision. Investors should watch how this consolidation affects market dynamics and whether it leads to improved innovation or pricing power for the combined Kichler-Progress entity under Kingswood's ownership.
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“Under Masco’s ownership, Kichler has undergone a series of transformations which have generated efficiencies within its business, improved customer service, and enabled greater product innovation. Going forward, we believe this business has greater potential to realize future growth as part of an organization with a more concerted focus on lighting,” said Keith Allman, President and CEO, Masco Corporation. “We are confident this transaction will be mutually beneficial to Kichler Lighting and Kingswood Capital Management, while simultaneously driving greater value for Masco shareholders.”
The transaction is expected to be completed prior to the end of the year, subject to customary closing conditions and regulatory approvals.
Headquartered in
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Media contact:
Sue Sabo
Director, Communications
313.792.6226
sue_sabo@mascohq.com
Investor Relations contact:
Robin Zondervan
Vice President, Investor Relations and FP&A
313.792.5500
robin_zondervan@mascohq.com
Source: Masco Corporation
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