Photo By Merillat
LOS ANGELES – Platinum Equity announced it has entered into a definitive agreement to acquire the Cabinetworks Group from American Industrial Partners, GIC and other equity holders.
Terms of the acquisition, announced April 5, were not disclosed. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2021.
Cabinetworks currently ranks #8 on the FDMC 300 list of largest North American wood products producers, and is the nation's second largest overall cabinet manufacturer. Estimated 2020 revenue for the company was $1.8 billion.
Headquartered in Ann Arbor, Michigan, Cabinetworks is the largest independently owned manufacturer and distributor of kitchen and bath cabinets in the United States, with brands that include: KraftMaid, Merillat, Medallion, Smart, Yorktowne, Echelon, Advanta, Studio Full Access, Master WoodCraft, Cabinets 2000, Cardell, DesignCraft, MasterCraft, Modico, QualityCabinets, Schuler and Serenade. The group produces both framed and frameless cabinetry, operating out of 14 assembly plants and three component facilities, and serves customers through a multi-channel approach including sales to dealers, home centers and distributors across the United States.
The news comes a little more than a year after the AIP-owned ACProducts (acpi) acquired the Masco Cabinetry division from Masco Corp. for $1 billion. The combined group was renamed Cabinetworks in March 2020.
"Cabinetworks has a comprehensive portfolio of highly-respected, fast-growing brands, a strong leadership team and a proven track record for growth. The company's leading position in the cabinets space, combined with Platinum Equity's operational toolkit and M&A resources, make Cabinetworks a great fit for our portfolio," said Jacob Kotzubei, partner at Platinum Equity.
"We have been honored to work with a best-in-class management team and a remarkable and dedicated workforce across the United States to build an industry-leading kitchen and bath cabinetry business," said Rick Hoffman, partner at American Industrial Partners. "We are proud of what Cabinetworks has accomplished during our partnership over the last eight years and believe the company is now positioned for still greater success in the years to come."
"This transaction is another important milestone of success for our Cabinetworks team," added Joe Gross, Cabinetworks, CEO. More than 8,000 people are employed by the group.
"We are thrilled to partner with CEO Joe Gross and the entire Cabinetworks team," said Todd Golditch, Platinum Equity managing director. "They have built an attractive platform and helped transform the industry, and there is also a significant amount we can do together to continue their history of innovation and grow the business both organically and through additional M&A activity. Platinum Equity has had a lot of success in the building products sector, we know the industry well and are excited about the opportunities ahead for Cabinetworks."
Other companies that Platinum Equity previously invested in within the building products ecosystem include Interior Logic Group, the largest national provider of interior design and finish solutions for the homebuilding industry, and PrimeSource, a national distributor of specialty building materials including fasteners, serving the new construction and remodeling markets.
BofA Securities and Barclays served as financial advisors to Cabinetworks. Ropes & Gray LLP is serving as legal advisor to American Industrial Partners.
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