Platinum Equity entered into a definitive agreement to acquire Cabinetworks from American Industrial Partners, GIC and other equity holders. BofA Securities will lead debt financing to support the acquisition.
Cabinetworks is an independently-owned manufacturer and distributor of kitchen and bath cabinets in the United States with brands that include KraftMaid, Medallion, Smart, Merillat, Yorktowne, Echelon, Advanta, Studio Full Access, Master WoodCraft and Cabinets 2000.
“Cabinetworks has a comprehensive portfolio of highly-respected, fast-growing brands, a strong leadership team and a proven track record for growth,” Jacob Kotzubei, a partner at Platinum Equity, said. “The company’s leading position in the cabinets space, combined with Platinum Equity’s operational toolkit and M&A resources, make Cabinetworks a great fit for our portfolio.”
“We are thrilled to partner with CEO Joe Gross and the entire Cabinetworks team,” Todd Golditch, a managing director at Platinum Equity, said. “They have built an attractive platform and helped transform the industry, and there is also a significant amount we can do together to continue their history of innovation and grow the business both organically and through additional M&A activity. Platinum Equity has had a lot of success in the building products sector, we know the industry well and are excited about the opportunities ahead for Cabinetworks.”
Other companies that Platinum Equity previously invested in within the building products ecosystem include Interior Logic Group, a provider of interior design and finish solutions for the homebuilding industry, and PrimeSource, a distributor of specialty building materials for the new-construction and remodeling markets.
“This transaction is another important milestone of success for our Cabinetworks team,” Gross, said. “I would like to thank all our 8,000 employees for the work that you do every day. I want all Cabinetworks employees to understand that this announcement validates what you already know in your heart: The future is limitless for our company when we delight our customers with products and service. To our valued customers, suppliers: Platinum Equity’s investment in our business is a wonderful development in the history of our company. In Platinum Equity, we have a world-class partner as we continue to grow our business.”
“We have been honored to work with a best-in-class management team and a remarkable and dedicated workforce across the United States to build an industry-leading kitchen and bath cabinetry business,” Rick Hoffman, a partner at American Industrial Partners, said. “We are proud of what Cabinetworks has accomplished during our partnership over the last eight years and believe the company is now positioned for still greater success in the years to come.”
The transaction is subject to customary closing conditions and is expected to close in Q2/21. Citi served as sole M&A advisor to Platinum Equity. Kirkland & Ellis is serving as legal advisor to Platinum Equity.
BofA Securities and Barclays served as financial advisors to Cabinetworks. Ropes & Gray is serving as legal advisor to American Industrial Partners.