Masco expands into lighting
Masco Corporation said it has signed a definitive agreement to acquire The L.D. Kichler Co. (Kichler Lighting), a developer of decorative residential and light commercial lighting products, ceiling fans and LED lighting systems across the consumer and pro distribution channels.
Based in Cleveland, Kichler Lighting had revenues of approximately $450 million in 2017 and employs approximately 700 people worldwide.
The cash transaction is expected to close in the first quarter of 2018. Masco said that it intends to report the financial results of Kichler Lighting in its Decorative Architectural Products segment. Additional terms of the deal were not disclosed.
“We are excited about the prospects of expanding Masco’s reach into the fragmented $6 billion U.S. residential lighting industry,” Masco’s president and CEO Keith Allman said. “Kichler Lighting is a strong strategic fit with our focus on building products where brand, innovation and strength of distribution provide a competitive advantage.”
“Kichler’s products share many of the same customers as numerous other Masco brands and will complement our current product offering while strengthening our relationships with these customers,” Allman added.
Additionally, Masco announced that it acquired Mercury Plastics Inc. (Mercury) in the fourth quarter of 2017. Mercury is a plastics processor and manufacturer of water handling systems for appliance and faucet applications, as well as other highly engineered plumbing products, tubing, and assemblies.
Based in Middlefield, Ohio, Mercury had revenues of approximately $45 million in 2017 and employs approximately 300 people. Masco intends to report the financial results of Mercury in its Plumbing Products segment. Terms of the deal were not disclosed by Masco.
“We believe that, because of our rigorous acquisition process and patience, these acquisitions will be accretive to our earnings in 2018 and will demonstrate Masco’s ability to deliver on our strategic initiatives to create significant shareholder value,” Allman said.
Based in Livonia, Mich., Masco produces and distributes home improvement and building products. The company’s brands include Behr paint, Delta and Hansgrohe bath fixtures, KraftMaid and Merillat cabinets, Milgard windows and doors, and Hot Springs spas.
