By the end of the first quarter this year, Cleveland-based Kichler Lighting will become part of branded home improvement and building products giant Masco Corp., headquartered in Livonia, Mich., which counts such popular brands as Behr® paint; Delta® and Hansgrohe® faucets, bath and shower fixtures; KraftMaid® and Merillat® cabinets; Milgard® windows and doors; and Hot Spring® spas among its fold.
Executives from Masco Corp. announced the signing of a definitive agreement to acquire The L.D. Kichler Co. (“Kichler Lighting”) on January 8, one day prior to opening day of this year’s International Builders Show (IBS) and Kitchen/Bath Industry Show (K/BIS) in Orlando, at which both companies are significant exhibitors.
“We are excited about the prospects of expanding Masco’s reach into the fragmented $6 billion U.S. residential lighting industry,” says Masco’s President & 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. Kichler’s products share many of the same customers as numerous other Masco brands and will complement our current product offering while strengthening our relationships with these customers.”
According to the publicly traded Masco Corp., Kichler Lighting had revenues of approximately $450 million in 2017 and employs approximately 700 people worldwide. Masco also announced that it had acquired Middlefield, Ohio-based Mercury Plastics, Inc. in the fourth quarter of 2017. Mercury is a plastics processor and manufacturer of water handling systems for appliance and faucet applications, as well as other highly engineered plumbing products, tubing, and assemblies. Mercury had revenues of approximately $45 million in 2017 and employs approximately 300 people.
Tony Davidson, President of Kichler, feels the partnership heightens both companies’ strengths. “I think [the decision] works strategically well. We complement what they do in their product portfolio. It’s a nice fit,” he notes. “I believe that our management team, our strategy, and how we go to market will be a continuation of what we have been doing. What’s exciting to me are the resources that will now be available so we can have collaborations with the Masco brands and validate the trends.” Davidson says there are no plans to relocate the Kichler headquarters.
“We are extremely pleased to welcome the Kichler Lighting and Mercury teams to the Masco family,” Allman states. “We believe that, because of our rigorous acquisition process and patience, these acquisitions will be accretive to our earnings in 2018 and will demonstrate Masco’s ability to deliver on our strategic initiatives to create significant shareholder value. We expect to provide a more in-depth update on these transactions on our fourth quarter earnings conference call on February 8, 2018.”
