Masco Corp. (NYSE: MAS) has agreed to purchase Kichler Lighting in order to broaden its outreach into the residential and light commercial lighting industry.
Kichler Lighting, doing business as The L.D. Kichler Co., manufactures decorative lighting products, ceiling fans and LED lighting systems for everyday consumers. The Cleveland-based target also provides light commercial products for the professional distribution channel as well. Kichler Lighting reported revenues of approximately $450 million last year.
“We are excited about the prospects of expanding Masco’s reach into the fragmented $6 billion U.S. residential lighting industry,” states Masco CEO Keith Allman. “Kichler Lighting is a strong strategic fit with our focus on building products where brand, innovation and strength of distribution provide a competitive advantage.” Financial terms of the deal, expected to close in the first quarter of 2018, were not disclosed.
Masco, based in Livonia, Michigan, also designs and distributes branded home improvement and building products. Kichler’s products, according to the buyer, share many of the same customers as Masco’s branded products. Behr paint, Delta faucets, Hansgrohe shower fixtures and KraftMaid cabinets are among the buyer’s portfolio of brands. The Kichler Lighting deal comes directly after Masco acquired Mercury Plastics Inc. in the fourth quarter of 2017.
Related deals in the residential lighting and commercial construction industry include: private equity firm Ardian’s purchase of SLV, a manufacturer of lighting fixtures; and Owens Corning’s purchase of European insulation distributor Parco Group, after announcing the company’s plan to grow abroad.