Buyout Firm AIP Said to Weigh $3.5 Billion Sale of Cabinetworks

Private equity firm American Industrial Partners is considering a sale of Cabinetworks Group that could value the building products company at about $3.5 billion, according to people familiar with the matter.

New York-based AIP is working with advisers on strategic options for Cabinetworks, including a potential sale, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The business is expected to attract interest from other private equity firms and industry peers, the people said.

AIP hasn’t decided on a course of action and its plans could change, they said.

Representatives for Cabinetworks and AIP didn’t respond to requests for comment.

AIP’s involvement with Cabinetworks goes back to 2012 when it bought ACProducts. It has since expanded the business through a series of acquisitions, most recently Masco Corp.’s cabinetry unit last year with the group subsequently being re-branded with its current name, according to data compiled by Bloomberg.

Cabinetworks, based in Ann Arbor, Michigan, is led by Chief Executive Officer Joe Gross. It owns brands including Advanta, QualityCabinets and Schuler, according to its website.

AIP bought Domtar’s personal care unit this month for $920 million, adding to a portfolio that includes Ascent Aerospace and tire maker Carlstar Group, according to its website.

Source: Yahoo Finance