Taylor, Mich., September 12, 2002 -- Masco Corporation (NYSE: MAS) today announced the acquisition of four companies with annualized 2002 sales expected to be in excess of $650 million. Total consideration for the four acquisitions is in excess of $800 million in cash and Masco common stock.
Companies acquired are:
Service Partners, LLC, a distributor and installer of insulation and other building products. Headquartered in Richmond, Virginia, Service Partners operates 49 distribution centers and 52 contracting branches nationwide;
SCE Unlimited, Inc., an installer of a wide range of products for the residential new construction market including gutters, shelving, closet organizers, siding and shutters, located in suburban Chicago, Illinois;
IDI Group, a regional installer of insulation and other products, including fireplaces, garage doors, gutters, glass, mirrors and shower enclosures, based in Atlanta, Georgia; and
Diversified Cabinet Distributors, a distributor and installer of cabinets and countertops, located in Atlanta, Georgia.
"The addition of these fine companies further expands our geographic coverage and the range of installation services and products that we can offer to our customers," commented Masco Chairman Richard A. Manoogian. "The companies are all leaders in their market areas and we are delighted they have joined the Masco family of companies."
While each of the acquired companies is expected to be modestly accretive to Masco's 2002 earnings, the Company has not changed its full-year earnings guidance of $1.50 to $1.55 per common share (excluding the first six months non-cash accounting change charge of $.19 per common share related to goodwill impairment) since the added earnings are more than offset by the dilution resulting from the May common stock offering and the negative interest carry cost of the Company's current large cash position resulting from recent debt financings to take advantage of favorable interest rates.
Masco's current business continues to be strong and the Company presently expects that third quarter earnings will be at the higher end of the previously forecast range of $.41 to $.44 per common share.
Headquartered in Taylor, Mich., Masco Corporation is one of the world's leading manufacturers of home improvement and building products as well as a leading provider of services that include the installation of insulation and other building products.
Statements in this press release may include certain forward-looking statements regarding Masco's future sales and earnings growth potential. Actual results may vary materially because of external factors such as interest rate fluctuations, changes in consumer spending and other factors over which management has no control. Additional information about our products, markets and conditions, which could affect our future performance, is contained in the Company's filings with the Securities and Exchange Commission.