MasterBrand and American Woodmark Corporation have signed an agreement for an all-stock merger, creating a company with a combined equity value of $ 2.4 billion and an enterprise value of $3.6 billion. American Woodmark shareholders will receive 5.150 shares of MasterBrand for each share they own. Following the merger, MasterBrand shareholders will hold 63% of the combined company, while American Woodmark shareholders will own 37%.
The new entity aims to offer a broader range of cabinet brands, expand market reach, and achieve about $90 million in cost savings by year three. It anticipates increased flexibility for channel partners, enhanced operations, and commercial growth through its expanded footprint. Financially, the merged company aims for a strong cash flow, a net debt-to-adjusted EBITDA ratio of less than 2.0x, and increased investment in innovation and technology.
Both companies share a commitment to customer focus and operational excellence, which should facilitate integration. After closing, American Woodmark becomes a MasterBrand subsidiary, with leadership roles split between executives from both firms, with headquarters located in Beachwood, OH.
The deal requires shareholder and regulatory approvals and is expected to be completed in the first quarter of 2026. MasterBrand will expand its credit revolver to pay off American Woodmark’s debt at closing, maintaining a strong financial position.
KEY QUOTES:
“Bringing together MasterBrand and American Woodmark will be a transformative step for both of our organizations that will even better position us to serve the evolving needs of our customers and provide consumers with more choice and access. MasterBrand and American Woodmark bring unique but complementary strengths – strong and broad portfolios and streamlined low-cost manufacturing profiles – and in leveraging them, the combination will help us accelerate our strategies and create enhanced value for both companies’ shareholders. Building on our strong progress in integrating Supreme Cabinetry Brands and our continuous efforts to prioritize executional and financial discipline, we are confident in our ability to unlock meaningful synergies with speed and rigor. I look forward to uniting the talented MasterBrand and American Woodmark teams to deliver on this compelling opportunity.”
Dave Banyard, President and Chief Executive Officer of MasterBrand
“Creating value through people has been the core mission of American Woodmark. Our company has operated with a vision-driven, values-based philosophy and a strategy focused on growth, digital transformation, and platform design. Combining with MasterBrand will build on these core values and strategy to enhance our offering and service for customers and consumers, while driving value for American Woodmark shareholders. With MasterBrand, we are joining a partner that shares our commitment to investing for growth, investing in associates, and investing for the future. Together, we will create an even stronger company that is able to provide a broader product portfolio across expanded channels, advance our innovation capabilities, and create exciting opportunities for team members.”
Scott Culbreth, President and CEO of American Woodmark
