After a two-decade-long investment in its “Installation and Other Services” division, Masco Corp., parent company of Millgard Windows and Doors, announced it will spin 100 percent of the division off to another company.

MASCO
Masco will spin off its “Installation and Other Services” division to another company.

The board of directors approved the decision, recommended by president and CEO Keith Allman.

“Today’s transformative actions reflect our continued commitment to enhance shareholder value through the active management of our portfolio, effective capital allocation, cost control, and organizational focus,” says Allman. “As separate companies, both Masco and the Services Business will have greater flexibility to focus on and pursue their respective growth strategies. In addition, the actions we are taking at the corporate office are intended to improve our cost position and drive value across our enterprise.”

In the press release titled “Masco Announces Strategic Initiatives to Drive Shareholder Value,” the company shared specific steps it will take in hopes of achieving that goal over the mid- to long-term. Beyond spinning off its services division, those steps include repurchasing 50 million shares of the company’s stock (14 percent of the company) and the reduction of corporate expense equivalent to $35-40 million annually.

Part of that amount will come from cutting positions at its corporate headquarters. A total of 40 percent of the company’s employees will be cut, reports The Detroit News.

The company will host an “investor day” on Feb. 9, 2015 in New York at which time it will discuss its outlook for 2015 and the long-term growth strategy for each of its businesses.

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