Platinum Equity has entered into a definitive agreement to acquire The Cabinetworks Group (“Cabinetworks”) from American Industrial Partners, GIC, and other equity holders.
Cabinetworks is the largest independently owned manufacturer and distributor of kitchen and bath cabinets in the United States under the nation’s leading brands, including: KraftMaid, Medallion, Smart, Merillat, Yorktowne, Echelon, Advanta, Studio Full Access, Master WoodCraft, and Cabinets 2000. The company produces both framed and frameless cabinetry, operating out of 14 assembly plants and three component facilities, and serves customers through a multi-channel approach including sales to dealers, home centres and distributors across the United States.
Jacob Kotzubei, a partner at Platinum Equity, said, “Cabinetworks has a comprehensive portfolio of highly respected, fast-growing brands, a strong leadership team, and a proven track record for growth. 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.”
Todd Golditch, a managing director at Platinum Equity, said, “We are thrilled to partner with CEO Joe Gross and the entire Cabinetworks team. They’ve 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 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, the largest national provider of interior design and finish solutions for the homebuilding industry, and PrimeSource, a national distributor of specialty building materials including fasteners serving the new-construction and remodeling markets.
Joe Gross, chief executive officer of Cabinetworks, said, “This transaction is another important milestone of success for our Cabinetworks team. 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.”
Rick Hoffman, a partner at American Industrial Partners, said, “We have been honoured 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. 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 the second quarter of 2021.