Platinum Equity announced an agreement to acquire The Cabinetworks Group, the largest independently owned manufacturer and distributor of kitchen and bath cabinets in the United States.
Among the company’s 19 cabinet brands, some are the biggest names in the industry—KraftMaid, Medallion, Smart, Merillat, Yorktowne, Echelon, Advanta, Studio Full Access, Master WoodCraft, and Cabinets 2000. The company produces both framed and frameless cabinetry from 14 assembly plants and three component facilities. Together they serve customers through a multi-channel approach including sales to dealers, home centers and distributors.
Platinum Equity indicated their hope to grow the businesses through operational improvements as well as additional mergers and acquisitions.
“Cabinetworks has a comprehensive portfolio of highly-respected, fast-growing brands, a strong leadership team and a proven track record for growth,” said Jacob Kotzubei, a partner at Platinum. “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. They’ve built an attractive platform and helped transform the industry,” said Platinum managing director Todd Golditch. “There is a significant amount we can do to continue on their history of innovation and to grow the business both organically and through additional M&A activity.”
Platinum Equity previously invested the building products ecosystem via its purchase of Interior Logic Group, the largest national provider of interior design and finish solutions for builders as well as PrimeSource, a national distributor of specialty building materials serving the new-construction and remodeling markets.
Cabinetworks CEO Joe Gross and Rick Hoffman, a partner at its previous parent company, American Industrial Partners both touted a potential for more growth in the months and years ahead. There was no talk of streamlining brands within the portfolio or any other changes that would impact residential construction professionals who source cabinets from the company today.
“This transaction is another important milestone of success for our Cabinetworks team,” said Gross who will continue as CEO under Platinum’s ownership. “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.”
“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,” said AIP partner Rick Hoffman.
The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2021. QR