Masco Corporation signed a definitive agreement to sell its Kichler Lighting business to an affiliate of the Kingswood Capital Management private-equity firm for a purchase price of approximately $125 million, subject to customary adjustments.
Headquartered in Solon, OH, Kichler Lighting is a well-known provider of decorative residential and light commercial lighting products, ceiling fans and LED lighting systems across both consumer and professional distribution channels. Kingswood Capital Management, a private investment firm based in Los Angeles, is the owner of Progress Lighting, also a provider of residential and light commercial decorative lighting solutions. Kingswood purchased Progress Lighting from Hubbell earlier this year.
“Under Masco’s ownership, Kichler has undergone a series of transformations which have generated efficiencies within its business, improved customer service, and enabled greater product innovation. Going forward, we believe this business has greater potential to realize future growth as part of an organization with a more concerted focus on lighting,” said Keith Allman, president and CEO, Masco Corp., in the press release.
MASCO’s portfolio of brands includes Behr paint, Delta and Hansgrohe faucets; Liberty-branded decorative and functional hardware; and Hot Spring spas.
A post at InsideLighting.com said the combined purchase price for Kichler and Progress Lighting was approximately $256 million and that Kingswood could package the combination of these two big residential lighting brands for a future sale.