LIVONIA — Masco Corporation Announces Sale of Lighting Firm Kichler
In a significant business move, Masco Corporation, a prominent home improvement and building products company based in Livonia, has officially announced the sale of its lighting division, Kichler Lighting, to a private investment firm located in Los Angeles. The sale agreement was disclosed on September 3, with the final deal amounting to $125 million.
Details of the Sale
Kichler Lighting, which operates from Solon, Ohio, specializes in providing a wide range of decorative lighting products for residential and light commercial use. Their offerings include everything from stylish ceiling fans to modern LED lighting systems, catering to both consumers and professionals in the industry.
The buyer, Kingswood Capital Management, is an investment firm that also owns Progress Lighting, an established player in the decorative lighting segment. The acquisition aligns with Kingswood’s strategy to focus on expanding its lighting solutions within the residential and light commercial markets.
Masco’s Vision for Kichler
Keith Allman, the president and CEO of Masco Corporation, remarked on the transition, stating, “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.” He emphasized that the sale could unlock new opportunities for Kichler to grow as part of a company dedicated to lighting products.
Allman expressed confidence that this partnership will be beneficial for both Kichler Lighting and Kingswood Capital Management. It is also believed that this strategic move will bring greater value to Masco’s shareholders as the company realigns its focus on its core businesses.
Completion Timeline
The transaction is expected to wrap up by the end of this year, pending the usual regulatory approvals and other customary conditions associated with such deals. This sale marks a notable shift for Masco, which has been refining its portfolio to focus on its primary product lines.
About Masco Corporation
Founded by Alex Manoogian in 1929, Masco Corporation has grown into a giant in the building products industry. The company, which now operates more than 38 manufacturing facilities worldwide, moved its headquarters to Livonia in 2017. Masco’s extensive portfolio includes popular brands such as Behr paint, Delta and Hansgrohe faucets, Liberty decorative hardware, and HotSpring spas. Today, the company employs over 19,000 people.
What Does This Mean for the Future?
The sale of Kichler Lighting indicates a significant shift in Masco’s approach to its business operations and market focus. This move is expected to enhance Kichler’s growth potential, particularly under a management group that specializes in lighting products. For consumers, this may mean more innovative and efficient lighting solutions in the future.
As the business landscape continues to evolve, the decisions made by companies like Masco are important indicators of changing trends and opportunities within the home improvement sector. As both companies prepare for the upcoming transition, stakeholders are watching closely to see how this shift will impact the lighting market.
