MasterBrand updates Supreme acquisition

BEACHWOOD, Ohio — "Operational optimization" is a critical synergistic rationale that the leadership of MasterBrand is looking at as it looks to "dots the i's and cross the t's" on the massive $520 million deal announced May 21 that would see Supreme Cabinetry Brands come under the wing of MasterBrand, North America's largest manufacturer of cabinets.

The acquisition is expected to deliver cost synergies of $28 million by the end of year three, and the company says that these will come from areas including procurement, facility optimization, and overhead expenses.

Of that synergy savings, 70% is expected to come from operational optimization, and then supply chain covers the remaining 30% of supply chain and other process improvements, said Dave Banyard, President and Chief Executive Officer of MasterBrand in a conference call discussing the deal.

“Supreme has three manufacturing facilities, in many ways they're complementary to ours," said Banyard. "And part of our synergy plan is really to optimize capacity across our combined networks."

He added that the company has specific plans and ideas for that capacity, but they are waiting until closing before they discuss those plans. The deal, which includes two Dura Supreme plants and a Bertch factory, is expected to close during the third quarter of 2024.

"I think they have been a great manufacturing footprint that serves the customers well, and I think we're going to analyze that in conjunction with ours and have some, I think, very solid plans of what we can do with that and we of course want to include them in those discussions and make sure we're all aligned before we take action ... If you think about what we've been doing over the past three or four years as a company, it's really what we do. It's optimizing the fixed assets that we have.”

Andi Simon, Executive Vice President and Chief Financial Officer of MasterBrand, said "Our team has the proven tools – the MasterBrand Way – to drive operational efficiencies and improvements across the business. We also have detailed integration plans with clear targets and a dedicated team in place to make the post-closing impact as seamless as possible. These are teams that have executed on opportunities like this before, and our culture of continuous improvement underpins our team's ability to capture the synergies and opportunities inherent in the combination."

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.

 

.

Have something to say? Share your thoughts with us in the comments below.

Profile picture for user larryadams
About the author
Larry Adams | Editor

Larry Adams is a Chicago-based writer and editor who writes about how things get done. A former wire service and community newspaper reporter, Larry is an award-winning writer with more than three decades of experience. In addition to writing about woodworking, he has covered science, metrology, metalworking, industrial design, quality control, imaging, Swiss and micromanufacturing . He was previously a Tabbie Award winner for his coverage of nano-based coatings technology for the automotive industry. Larry volunteers for the historic preservation group, the Kalo Foundation/Ianelli Studios, and the science-based group, Chicago Council on Science and Technology (C2ST).