MasterBrand to acquire American Woodmark in $3.6B deal

Ohio-based cabinet giant MasterBrand announced this month that it plans to acquire Winchester-based cabinet manufacturer American Woodmark in an all-stock merger, creating a company valued at $3.6 billion.

The boards of directors of both companies approved the transaction, which is expected to close in early 2026, pending shareholder approval, regulatory approvals and other closing conditions. MasterBrand intends to pay off American Woodmark debt at the close of the transaction.

After the transaction is completed, the combined company will be known as MasterBrand and will be headquartered in Beachwood, Ohio. However, the merged company plans to maintain “a significant presence” in Winchester.

The combined company will have a pro forma equity value of $2.4 billion and an enterprise value of $3.6 billion.

Upon closing the deal, American Woodmark shareholders will receive 5.150 shares of MasterBrand common stock for each share of American Woodmark common stock they own. Ultimately, MasterBrand shareholders will own approximately 63% of the combined company, while American Woodmark shareholders will own approximately 37% of the company, on a fully diluted basis. There is expected to be $90 million in cost savings by the third year following the merger.

“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,” said MasterBrand President and CEO Dave Banyard in a statement.

In a statement, American Woodmark President and CEO Scott Culbreth said combining the companies will enhance offerings for customers while improving value for shareholders.

“With MasterBrand, we are joining a partner that shares our commitment to investing for growth, investing in associates, and investing for the future,” Culbreth said. “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.”

Through the acquisitions, American Woodmark will become a wholly-owned subsidiary of MasterBrand. MasterBrand’s board of directors, which currently has eight members, will be expanded to include three directors from American Woodmark.

Barnyard will be CEO of the combined company and current board member David Petratis will serve as board chair.

It is unclear whether Culbreth will remain with the company after the merger. In the coming weeks and months, the companies will establish an integration planning team to evaluate the necessary resources for the combined company. Executive management roles beyond those outlined in the announcement made earlier this month will be determined as part of the planning process.

Specific details on how American Woodmark products will be branded after the merger have yet to be determined. The companies don’t expect any immediate footprint changes after completing the merger.

An American Woodmark spokesperson did not answer whether there would be relocations or layoffs in store for any of American Woodmark’s roughly 7,800 employees.

“MasterBrand shares our commitment to investing for growth, investing in employees and investing for the future and we expect the transaction to create exciting new opportunities for team members,” the spokesperson said in an emailed statement.

American Woodmark reported $1.7 billion in net sales for the fiscal year ending on April 30. That’s down from the $1.85 billion at that same point the previous year, and $2.07 billion in 2023. The company, founded in 1980 and headquartered in Winchester, has 18 manufacturing and distribution facilities, as well as eight service centers.

Meanwhile, MasterBrand bills itself as the largest manufacturer of residential cabinets in North America, offering cabinetry products for the kitchen, bathroom and other areas of the home. Its products are delivered through a distribution network of over 7,700 dealers, retailers and builders. The company employs over 13,000 people across more than 20 manufacturing facilities and offices.