BEACHWOOD, Ohio – July 11, 2024 – MasterBrand, Inc. (NYSE: MBC), through its subsidiary MasterBrand Cabinets LLC, has successfully completed the acquisition of Supreme Cabinetry Brands, Inc. from GHK Capital Partners LP for $520 million in cash. This significant acquisition enhances MasterBrand’s portfolio of premium cabinetry and is set to unlock substantial value for both shareholders and customers.

Dave Banyard, President and Chief Executive Officer of MasterBrand, expressed enthusiasm for the acquisition, stating, “Today is an important day as Supreme joins MasterBrand. This acquisition marks a major milestone, positioning MasterBrand to offer an unmatched breadth of offerings and enhanced service to even more customers and consumers. As one team, we will build on our shared legacy of innovative product leadership, superior customer service, and continuous improvement to drive significant value for all our stakeholders. We warmly welcome the talented team at Supreme and look ahead with excitement to our continued journey of growth and innovation.”

Strategic Impact and Synergies

The integration of Supreme Cabinetry Brands into MasterBrand will allow the combined company to reach a broader customer base through its complementary dealer networks. This enhanced reach is expected to deliver services with greater efficiency and effectiveness. The acquisition significantly broadens MasterBrand’s portfolio in the resilient and attractive kitchen and bath cabinetry categories, diversifies its distribution channels, and adds strategically located facilities to its footprint.

MasterBrand anticipates the acquisition will generate annual run-rate cost synergies of $28 million by the end of the third year post-acquisition. These synergies will arise from various areas, including procurement, facility optimization, and overhead expense reductions. In addition to cost savings, the company expects commercial synergies across the combined entities’ complementary channels and product lines.

Financial Expectations

The acquisition is projected to be accretive to adjusted diluted earnings per share within the first full year following the transaction’s closure. The financial benefits are expected to stem not only from the anticipated synergies but also from enhanced market positioning and operational efficiencies.

This acquisition aligns with MasterBrand’s strategic goals of expanding its market presence and enhancing shareholder value. The combined strengths of MasterBrand and Supreme Cabinetry Brands set a solid foundation for future growth and innovation in the cabinetry industry.

About MasterBrand
MasterBrand, Inc. (NYSE: MBC) is the largest manufacturer of residential cabinets in North America and offers a comprehensive portfolio of leading residential cabinetry products for the kitchen, bathroom and other parts of the home. MasterBrand products are available in a wide variety of designs, finishes and styles and span the most attractive categories of the cabinets market: stock, semi-custom and premium cabinetry. These products are delivered through an industry-leading distribution network of over 4,400 dealers, major retailers and builders. MasterBrand employs over 12,000 associates across more than 20 manufacturing facilities and offices. Additional information can be found at www.masterbrand.com.
 
Source:  MasterBrand