Masco, whose products include Behr paints, lighting, hardware, plumbing products and ceiling fans, saw its stock price advance 2.2% to $40.50 on the heels of a Bloomberg report that the private-equity firms Bain and American Industrial Partners are among the bidders.
The Livonia, Mich., building-products company in June said it was putting its cabinet and windows unit up for sale. The unit, which reported $120 million of operating profit on $1.7 billion in sales for 2018, could be valued at as much as $1.2 billion, Bloomberg reported.
The private-equity firm Clearlake Capital Group and the maintenance-products company W.W. Grainger (GWW - Get Report) are also among the bidders, having made it to the second round, sources familiar with the sale talks told Bloomberg.
Keith Allman, Masco's president and CEO, noted in the June statement that the company was "reducing our exposure to the new construction segment" and focusing on its "less cyclical plumbing products and decorative architectural products businesses going forward."
Masco estimated at the time that the sale of its cabinet and windows business would take six to nine months to complete.
Save 57% With Our Labor Day Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor! Click here to sign up!