MasterBrand and American Woodmark have completed their all-stock merger, creating a combined cabinet maker that will operate under the MasterBrand name and continue trading on the New York Stock Exchange under the symbol “MBC.”
Under the deal terms, American Woodmark shareholders received 5.150 shares of MasterBrand common stock for each share they held. The pre-closing MasterBrand shares remain outstanding and now represent about 63% of the combined company’s shares outstanding.
The company said the transaction is expected to generate about $90 million in annual run-rate cost synergies by the end of year three. It also said the deal is expected to be accretive to adjusted diluted earnings per share in year two.
MasterBrand’s leadership remains in place, with Dave Banyard continuing as president and chief executive officer and David Petratis remaining chairman. Three former American Woodmark directors — Andrew Cogan, Philip Fracassa and Daniel Hendrix — have joined MasterBrand’s board as independent directors.
American Woodmark is now a wholly owned subsidiary of MasterBrand, and its common stock will be delisted from Nasdaq. The combined company will keep MasterBrand’s headquarters in Beachwood, Ohio, while maintaining a presence in Winchester, Virginia. As a result of these announcements, the company's shares have moved 11.68% on the market, and are now trading at a price of $47.54. Check out the company's full 8-K submission here.
