Masco's Milgard Sale In Line With Portfolio Reshaping Efforts
Zacks Investment Research | Oct 06, 2019 09:39PM ET
Masco Corporation (NYSE:MAS) remains engaged in acquisitions and divestitures of underperforming businesses to focus on core areas, in a bid to accelerate growth and improve shareholder value. This is evident from the company’s recent deal to offload Milgard Windows.
Masco recently signed an agreement to divest Milgard Windows and Doors to MI Windows and Doors for approximately $725 million. The terms of the deal, which is expected to close in fourth-quarter 2019 and subject to customary closing conditions, are not yet disclosed.
Earlier in March 2019, Masco announced that it will undertake "strategic alternatives" for cabinetry and window businesses. Eventually, in June, the company concluded the strategic review of cabinetry and windows businesses, and revealed its aim of pursuing the sale of these businesses that include well-known brands such as Merillat, KraftMaid and Milgard.
The divestitures of cabinetry and window businesses are expected to be completed by the end of first-quarter 2020. We view this announcement to be positive for the company as it will remove cyclicality and lower-margin businesses. This move will also drive liquidity, helping the company to strengthen the product portfolio and boost better-performing businesses.
Post the competition of the transactions, Masco — which shares space in the Zacks Zacks Investment Research
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