Masco Corporation Announces Intention to Pursue Divestitures of Cabinetry and Windows Businesses

LIVONIA, Mich.–(BUSINESS WIRE)–Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers
of branded home improvement and building products, announced today that
it has concluded its strategic review of its Cabinetry and Windows
businesses and will pursue the sale of these businesses.

“Since we announced the strategic review of our Cabinetry and Windows
businesses in March, we have worked with our external advisors, our
Cabinetry and Windows business units, and our Board of Directors to
evaluate alternatives to best deliver long-term value for our
shareholders,” said Keith Allman, Masco’s President and CEO. “We have
determined that pursuing the sale of Masco Cabinetry, Milgard Windows
and UK Window Group in three separate transactions is the most
appropriate path forward to accomplish this value creation. We expect
that the sales of these businesses will be concluded in approximately
six to nine months, assuming that each of these transactions can be
completed on acceptable terms and conditions.”

“Over the past five years, we have executed on our strategy to reduce
our cyclicality by increasing our exposure to the repair and remodel
segment of the housing market,” continued Allman. “This began with the
spin-off of our installation services business and continued with a
focus on improving the operations of our Cabinetry and Windows
businesses. The strategic actions we are announcing today will complete
the process of reducing our exposure to the new construction segment of
the market and position us to focus on our less cyclical Plumbing
Products and Decorative Architectural Products businesses going
forward,” concluded Allman.

For 2018, the Cabinetry Products and Windows and Other Specialty
Products segments on a combined basis reported $1.7 billion in net
sales, $120 million in operating profit and $161 million in adjusted
EBITDA (defined as operating profit plus depreciation and amortization
expense of $36 million and excluding $5 million of rationalization
charges), which represented 20 percent of Masco’s consolidated net
sales, 10 percent of consolidated operating profit, and 11 percent of
consolidated adjusted EBITDA.

About Cabinetry Products Segment

Masco Cabinetry, headquartered in Ann Arbor, Michigan, manufactures and
sells semi-custom, stock and value-priced assembled cabinetry for
kitchen, bath, storage, home office and home entertainment applications
in a broad range of styles and price points to address consumer
preferences. Masco Cabinetry’s KRAFTMAID® and CARDELL®
products are sold primarily to dealers and home center retailers, and
its MERILLAT® and QUALITY CABINETS™ products are sold
primarily to dealers and homebuilders for both home improvement and new
home construction. For 2018, Masco reported net sales of its Cabinetry
Products segment of $950 million, operating profit of $86 million and
EBITDA of $99 million.

About Windows and Other Specialty Products

Masco’s two window businesses are Milgard Windows and Doors,
headquartered in Tacoma, Washington, and UK Window Group, headquartered
in Wales in the United Kingdom. Milgard manufactures and sells vinyl,
fiberglass and aluminum windows and patio doors under the MILGARD® brand
name for home improvement and new home construction, principally in the
western United States. The UK Window Group manufactures and sells vinyl
windows, composite doors, related products and components under several
brand names, including DURAFLEX™, GRIFFIN™, PREMIER™, PHOENIX DOORS™ and
EVOLUTION™. For 2018, Masco reported net sales of its Windows and Other
Specialty Products segment of $755 million, operating profit of $34
million and adjusted EBITDA of $62 million (excluding $5 million of
rationalization charges).

About Masco

Headquartered in Livonia, Michigan, Masco Corporation is a global leader
in the design, manufacture and distribution of branded home improvement
and building products. Our portfolio of industry-leading brands includes
Behr® paint; Delta® and Hansgrohe®
faucets, bath and shower fixtures; KraftMaid® and Merillat®
cabinets; Milgard® windows and doors; Kichler®
decorative and outdoor lighting; and HotSpring® spas. We
leverage our powerful brands across product categories, sales channels
and geographies to create value for our customers and shareholders. For
more information about Masco Corporation, visit

Safe Harbor Statement

This press release contains statements that reflect our views about our
future performance and constitute “forward-looking statements” under the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as “believe,” “anticipate,”
“appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,”
“expect,” “assume,” “seek,” “forecast,” and similar references to future
periods. Our views about future performance involve risks and
uncertainties that are difficult to predict and, accordingly, our actual
results may differ materially from the results discussed in our
forward-looking statements. We caution you against relying on any of
these forward-looking statements.

Our future performance may be affected by the levels of residential
repair and remodel activity and new home construction, our ability to
maintain our strong brands and reputation and to develop new products,
our ability to maintain our competitive position in our industries, our
reliance on key customers, the cost and availability of raw materials
and increasing tariffs, our dependence on third-party suppliers, risks
associated with international operations and global strategies, our
ability to achieve the anticipated benefits of our strategic
initiatives, including the potential divestitures of our Cabinetry and
Windows businesses, our ability to successfully execute our acquisition
strategy and integrate businesses that we have and may acquire, our
ability to attract, develop and retain talented personnel, risks
associated with our reliance on information systems and technology, and
our ability to achieve the anticipated benefits from our investments in
new technology. These and other factors are discussed in detail in Item
1A, “Risk Factors” in our most recent Annual Report on Form 10-K, as
well as in our Quarterly Reports on Form 10-Q and in other filings we
make with the Securities and Exchange Commission. Any forward-looking
statement made by us speaks only as of the date on which it was made.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict all
of them. Unless required by law, we undertake no obligation to update
publicly any forward-looking statements as a result of new information,
future events or otherwise.


Investor Contact
David Chaika
President, Treasurer and Investor Relations


Sue Sabo
Director, Communications

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