BEACHWOOD, Ohio — MasterBrand Inc., through its subsidiary MasterBrand Cabinets LLC, has agreed to acquire Supreme Cabinetry Brands Inc. from GHK Capital Partners LP for $520 million in cash.

The sale's closing is expected to be completed during the third quarter of 2024, subject to customary closing conditions and other regulatory approvals.

MasterBrand, which in 2024 entered its second year as a stand-alone company after divesting from Fortune Brands in December 2022, is the nation's largest cabinet company, ranking #7 overall in the FDMC300 listing of top North American wood products companies. Howard Lake, Minnesota-based Supreme Cabinetry, which operates two premium and iconic industry brands, Dura Supreme and Bertch, had sales of $253 million and ranked #45 in the FDMC300.

Dura Supreme had been in expansion mode itself, having recently built and opened a new facility in Statesville, North Carolina. 

According to MasterBrand, the acquisition is expected to deliver annual cost synergies of $28 million by the end of year three. These will come from areas including procurement, facility optimization, and overhead expenses. In addition to the cost synergies, MasterBrand anticipates commercial synergies across the companies’ complementary channels and product lines.

The deal adds two well-known names to MasterBrand's already impressive roster of companies that includes Aristokraft, Decora, Diamond, Fieldstone Cabinetry, HomeCrest, Kemper, KitchenCraft, Mantra, Mid-Continent Cabinetry, Omega, Schrock, Starmark, Thomasville, UltraCraft, and Urban Effects Cabinetry.

While MasterBrand intends to fund the transaction through cash on hand and existing credit facilities, the company has also arranged an incremental debt commitment from JPMorgan Chase Bank, N.A. to ensure ample liquidity to support its ongoing capital allocation priorities.