On Tuesday morning, Masco Corporation announced it has entered into a definitive agreement to sell Kichler Lighting to an affiliate of Kingswood Capital Management, a private equity firm in Los Angeles, California.
Headquartered in Solon, Ohio, Kichler Lighting offers indoor and outdoor decorative residential lighting, landscape lighting products, and ceiling fans.
Kingswood will acquire Kichler for approximately $125 million. The PE firm also owns Progress Lighting, a company with a similar profile to that of Kichler.
Masco Corporation is a “global leader in the design, manufacture and distribution of branded home improvement and building products,” according to their website. Headquartered in Livonia, Michigan, the Masco family of brands includes Behr Paint Company, Brasstech Inc., and Delta Faucet Company.
In the company’s press release, President and CEO Keith Allman stated, “Under Masco’s ownership, Kichler has undergone a series of transformations which have generated efficiencies within its business, improved customer service, and enabled greater product innovation. Going forward, we believe this business has greater potential to realize future growth as part of an organization with a more concerted focus on lighting.”
Allman continued, “We are confident this transaction will be mutually beneficial to Kichler Lighting and Kingswood Capital Management, while simultaneously driving greater value for Masco shareholders.”
The sale comes six and a half years after Masco purchased Kichler, in January of 2018, for approximately $550 million.
At that time, President and CEO Allman stated. “We are excited about the prospects of expanding Masco’s reach into the fragmented $6 billion U.S. residential lighting industry. Kichler Lighting is a strong strategic fit with our focus on building products where brand, innovation and strength of distribution provide a competitive advantage. Kichler’s products share many of the same customers as numerous other Masco brands and will complement our current product offering while strengthening our relationships with these customers.”