TAYLOR, MI — Masco Corporation (NYSE: MAS), parent of Masco Cabinetry and its Merillat and KraftMaid lines, says it will spin-off its installation and services businesses into a publicly-traded company. It also will buy back 50 million shares and plans to lay off 40 percent of headquarters staff.
The spin-off of 100 percent of Masco’s Installation and Other Services businesses, a $1.2 billion operation, will be done through a tax-free stock distribution to Masco’s shareholders.
Masco will take a $30 million charge over the next several quarters as it down-sizes headquarters staff. It expects to save $35-40 million annually.
“As separate companies, both Masco and the Services Business will have greater flexibility to focus on and pursue their respective growth strategies," says CEO Keith Allman. He says the Services Business, which includes insulation services, will focus on growth in North American new home construction as well as further expanding into commercial and retrofit categories.” Jerry Volas, currently Masco Group President, will become the CEO of the new unit.
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