Masco To Spin-Off Installation And Other Services Segment - Quick Facts

(RTTNews) - Home improvement and building products company Masco Corp. (MAS) announced that its board has approved the strategic initiatives. It will spin-off its Installation and Other Services businesses or "Services Business" into an independent, publicly-traded company through a tax-free stock distribution to Masco's shareholders.

Following the separation, Masco will continue to be listed on the NYSE under "MAS," and will remain headquartered in Taylor, Michigan.

The Services Business will be headquartered in Central Florida. Masco expects to complete the separation by mid- 2015.

As part of the strategic initiatives, the company also announced the reduction of corporate expense and simplification of Masco's organizational structure, resulting in an estimated charge of approximately $30 million over the next several quarters with anticipated company-wide annual savings of $35 million - $40 million.

Masco also noted that its Board has approved the repurchase of an aggregate of 50 million shares of the Company's common stock, which represents approximately 14 percent of Masco's currently outstanding shares. Repurchases are expected to be made over a multi-year period beginning in 2014. The repurchases will be funded through cash on hand and operating cash flow. As of June 30, 2014, cash on hand was $1.4 billion.

Masco also announced the Service Business management team. Jerry Volas, currently Masco Group President, will become the Chief Executive Officer. Robert Buck, currently Masco Contractor Services' President, will become the President and Chief Operating Officer. John Peterson, currently Masco Contractor Services' Chief Financial Officer, will become the Chief Financial Officer.