UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
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Item 1.01. Entry into a Material Definitive Agreement.
On September 29, 2019, Masco Corporation, a Delaware corporation (“Masco”), entered into a stock purchase agreement (the “Agreement”) with MIWD Holding Company LLC, a Delaware limited liability company (“MIWD”), pursuant to which Masco agreed to sell 100% of the stock of Milgard Manufacturing Incorporated, a Washington corporation, which operates under the name Milgard Windows and Doors (“Milgard”), to MIWD. The purchase price for the transaction is $725 million in cash, subject to certain customary purchase price adjustments.
The transaction is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Act, but it is not subject to a financing condition. The transaction is expected to close during the fourth quarter of 2019.
The Agreement contains representations, warranties and covenants of the parties that are customary for transactions of this type. Masco has also agreed to provide certain customary transition services to MIWD in relation to the Milgard business for a specified post-closing period.
The Agreement contains certain customary termination rights for Masco and MIWD, including if the closing does not occur on or before December 28, 2019, subject to certain extension rights.
The foregoing summary of the Agreement and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Agreement, which is filed as Exhibit 2.1 hereto and incorporated herein by reference. The representations, warranties and covenants contained in the Agreement are solely for the benefit of the parties to the Agreement. Investors and security holders are not third-party beneficiaries under the Agreement and should not rely on the representations, warranties, covenants or agreements, or any descriptions thereof as characterizations of the actual state of facts or condition of any party to the Agreement. Moreover, information concerning the subject matter of the Agreement may change after the date thereof and such subsequent information may or may not be fully reflected in Masco’s public disclosures.
Item 9.01/ Financial Statements and Exhibits.
| Exhibit No. | Description | |
| 2.1 | ||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
FORWARD-LOOKING STATEMENTS
Statements in this Current Report on Form 8-K that are not strictly historical may be “forward-looking” statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “outlook,” “believe,” “anticipate,” “appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods. Our views about future performance involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements.
Our future performance may be affected by the levels of residential repair and remodel activity and new home construction, our ability to maintain our strong brands and reputation and to develop new products, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of raw materials and increasing tariffs, our dependence on third-party suppliers, risks associated with international operations and global strategies, our ability to achieve the anticipated benefits of our strategic initiatives, including the potential divestitures of our Cabinetry and Windows businesses, our ability to successfully execute our acquisition strategy and integrate businesses that we have and may acquire, our ability to attract, develop and retain talented personnel, risks associated with our reliance on information systems and technology, and our ability to achieve the anticipated benefits from our investments in new technology. These and other factors are discussed in detail in Item 1A, “Risk Factors” in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Any forward-looking statement made by us speaks only as of the date on which it was made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| MASCO CORPORATION | ||
| By: | /s/ John G. Sznewajs | |
| Name: | John G. Sznewajs | |
| Title: | Vice President, Chief Financial Officer | |
October 3, 2019