Masco Corp (NYSE:MAS) reported the signing of a definitive deal to buy The L.D. Kichler Co., a leading developer of light commercial and decorative residential lighting products, LED lighting systems and ceiling fans across both professional and consumer distribution channels.
Keith Allman, the CEO and President of Masco, reported that they are thrilled about the opportunities of expanding company’s reach into the fragmented U.S. residential lighting market worth $6 billion. Kichler Lighting marks as a robust strategic fit with their focus on building items where brand, strength and innovation of distribution offer a competitive benefit. Kichler’s offerings share several of the same clients as many other Masco brands and will support their current product offering while solidifying their associations with these customers.
Based in Cleveland, Kichler Lighting posted revenues of around $450 million in 2017 and engages around 700 people worldwide. The deal is projected to close in Q1 2018, contingent to customary closing conditions as well as regulatory review. This transaction will be supported with cash on hand. Masco plans to report the financial performance of Kichler Lighting in its Decorative Architectural Offerings segment.
In addition, Masco reported that it bought Mercury Plastics, Inc. in Q4 2017. Mercury marks as a plastics processor and maker of water handling systems for faucet and appliance applications, and other highly engineered plumbing offerings, assemblies and tubing. Based in Middlefield, Mercury posted revenues of around $45 million in 2017 and engages around 300 people. Masco plans to report the financial performance of Mercury in its Plumbing Products division.
Allman expressed that they are extremely delighted to welcome the Mercury and Kichler Lighting teams to the Masco family. They consider that, because of their rigorous acquisition procedure and patience, these deals will be accretive to their earnings in 2018 and will showcase Masco’s ability to deliver on their strategic initiatives to establish significant shareholder value.