Southern Indiana Business Report
BEACHWOOD, Ohio – MasterBrand Inc. a cabinet manufacturer with a large footprint in Dubois County, announced last week it plans to acquire Supreme Cabinetry Brands Inc. from GHK Capital Partners LP for $520 million in cash.
In a press release announcing the news, MasterBrand said the move:
- Enhances MasterBrand’s portfolio with complementary products in attractive categories
- Extends diversity of channel distribution to reach more consumers
- Reinforces opportunity for capital flexibility through strong balance sheet and cash flow
MasterBrand Cabinets has about a dozen cabinet brands in its family of brands; the acquisition of Supreme will strengthen MasterBrand’s premier product portfolio.
“The addition of Supreme’s premium kitchen and bath cabinetry to our offering will enable MasterBrand to provide unmatched breadth and service to our customers and consumers, compelling opportunities for our combined teams, and value to our shareholders,” said Dave Banyard, president and CEO of MasterBrand.
“The acquisition of Supreme Cabinetry by MasterBrand is tremendously positive for Dubois County,” said Ed Cole, executive director of Dubois Strong, the county’s local economic development organization. “MasterBrand is a major employer for us, and we are very pleased to see their continued growth.“
‘Complementary cultures’
Founded in 1954 and headquartered in Howard Lake, Minnesota, Supreme manufactures premier cabinet brands. It has manufacturing sites in Iowa, Minnesota and North Carolina.
“Supreme’s complementary products will immediately expand MasterBrand’s portfolio and accelerate our strategy, while its nationwide dealer network will enhance our existing footprint and strengthen our ability to deliver high-quality, on-trend products,” Banyard said. “Importantly, MasterBrand and Supreme share complementary cultures grounded in a commitment to the customer and consumer experience. We look forward to welcoming the Supreme team and working alongside them to unlock the many opportunities presented by this acquisition and advance our purpose of building great experiences together.”
“We have long admired MasterBrand’s dedication to delivering for customers, and its commitment to operational excellence. We are excited to join the MasterBrand family,” said Tony Sugalski, CEO of Supreme. “We believe that combining our outstanding service level and craftsmanship with MasterBrand’s resources, scale, and shared commitment to high-quality production will deliver greater value to our customers and consumers.”
It’s anticipated the deal will close in the third quarter of 2024. The acquisition is expected to deliver annual run-rate cost synergies of $28 million by the end of year three. These will come from areas including procurement, facility optimization and overhead expenses. In addition to the cost synergies, MasterBrand anticipates commercial synergies across the companies’ complementary channels and product lines.
While MasterBrand intends to fund the transaction through cash on hand and existing credit facilities, the company has also arranged an incremental debt commitment from JPMorgan Chase Bank, N.A. to ensure liquidity to support its ongoing capital allocation priorities.
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. Headquartered in Beachwood, Ohio, MasterBrand products are available from a network of more than 4,400 dealers, major retailers and builders. MasterBrand employs more than 12,000 associates across more than 20 manufacturing facilities and offices. Additional information can be found at www.masterbrand.com.