Masco Corporation (MAS) is shedding its Kichler Lighting business, selling it to an affiliate of Kingswood Capital Management for an estimated $125 million. This move marks a significant shift for Masco, a company known for its diverse portfolio of home improvement products. Kichler Lighting, a well-established brand in the lighting industry, specializes in decorative lighting products, ceiling fans, and LED systems for residential and light commercial applications.
The sale is expected to finalize by the end of the year, contingent upon customary closing conditions and regulatory approvals. According to Keith Allman, President and CEO of Masco Corporation, Kichler has undergone substantial transformations under Masco’s ownership, resulting in improved efficiency, customer service, and product innovation. However, Allman expressed confidence that Kichler holds greater potential for growth within an organization solely focused on lighting.
This divestiture comes after Masco reported strong second-quarter adjusted earnings per share (EPS) of $1.20, surpassing analyst expectations of $1.18. However, sales of $2.091 billion fell short of the estimated $2.103 billion. As of June 30, 2024, Masco’s cash and equivalents amounted to $398 million.
Investors interested in Masco can access the stock through ETFs like Honeytree U.S. Equity ETF (BEEZ) and Brookstone Intermediate Bond ETF Brookstone Growth Stock ETF (BAMG).
MAS shares closed down 1.7% at $78.21 on Tuesday.
