Masco Corp. has made a deal to sell one of its window and door subsidiaries for $725 million after exploring "strategic alternatives" for its business.
Masco entered an agreement to sell Milgard Windows and Doors to Pennsylvania-based MI Windows and Doors, according to a Tuesday news release from Masco.
The Livonia, Mich.-based company plans to part with Milgard Windows and Doors of Tacoma, Wash., a maker of vinyl, fiberglass and aluminum windows, and Wales-based UK Window Group, a maker of vinyl windows, composite doors and related products, in separate transactions.
With estimated profile extrusion sales of $83 million, Milgard ranks 47th among North American pipe, profile and tubing manufacturers, according to Plastics News' latest ranking.
The sale is expected to close in the fourth quarter.
Masco, whose brands include Behr, KraftMaid and Merillat, announced in March that it was seeking to divest from its cabinetry and window businesses, including Milgard, Ann Arbor-based Masco Cabinetry and UK Window Group. It said in June that it was hoping to sell each of the subsidiaries within six to nine months.
Masco is shifting focus to the repair and remodel segments of the housing market, such as plumbing and furnishings, as it divests from the more cyclical window and door products.
In 2018, Masco's cabinetry and windows and other specialty products segments pulled in $1.7 billion in net sales, $120 million in operating profit and $161 million in adjusted EBITDA. The segments represented 20 percent of net sales for Masco, which reported total revenue of $8.4 billion in 2018.
A Masco spokeswoman did not immediately respond to a request for more details Tuesday morning.
Shares of Masco rose $1.15, or 2.8 percent to $42.83 Tuesday morning after the deal was announced.