MasterBrand Sets $90M Synergy Target with American Woodmark Merger

MasterBrand has outlined a $90M synergy target by year 3 with its American Woodmark merger, while reaffirming its outlook amid market softness. The company's CEO, R. David Banyard, announced a definitive all-stock merger agreement with American Woodmark, creating a customer-centric platform. The deal is expected to be transformative for both companies.

MasterBrand Inc. (MBC) has announced a definitive all-stock merger agreement with American Woodmark Corporation, aiming to create a customer-centric platform and achieve significant synergies. The merger, expected to be transformative for both companies, was announced by R. David Banyard, President and CEO of MasterBrand, during the company's Q2 2025 earnings call [1].

The combined company will have a pro forma equity value of $2.4 billion and an enterprise value of $3.6 billion based on the exchange ratio and closing share price as of August 5, 2025 [2]. The merger is expected to result in approximately $90 million in run rate cost synergies by the end of year 3, with accretion to MasterBrand's adjusted diluted earnings per share (EPS) in year 2. The companies anticipate that the merger will broaden channel partnerships, expand geographic reach, and enhance operating agility, ultimately benefiting customers and consumers [1].

The merger will be accretive to MasterBrand's adjusted diluted EPS in year 2 and is expected to generate significant cash flow. The combined company will be headquartered in Beachwood, Ohio, and maintain a significant presence in Winchester, Virginia. MasterBrand shareholders will own approximately 63% of the combined entity, while American Woodmark shareholders will own approximately 37% [1].

MasterBrand reaffirmed its full-year 2025 financial guidance, with adjusted EBITDA expected to be in the range of $315 million to $365 million, and a corresponding margin range of 12% to 13.5%. The outlook does not reflect potential benefits from the proposed merger nor expected transaction or integration costs [1].

The integration of Supreme remains on track, with plant consolidation initiatives in North Carolina nearing completion, and expected benefits ramping meaningfully in the second half of 2025. The companies anticipate that the merger will accelerate innovation, advance growth, and amplify returns for shareholders [1].

The merger is expected to be accretive to MasterBrand's adjusted diluted EPS in year 2 and generate significant cash flow. The combined company will be headquartered in Beachwood, Ohio, and maintain a significant presence in Winchester, Virginia. MasterBrand shareholders will own approximately 63% of the combined entity, while American Woodmark shareholders will own approximately 37% [1].

References:
[1] https://seekingalpha.com/news/4481041-masterbrand-outlines-90m-synergy-target-by-year-3-with-american-woodmark-merger-while
[2] https://masterbrand.com/investors/investor-news/news-details/2025/MasterBrand-and-American-Woodmark-to-Combine-in-an-All-Stock-Transaction-to-Accelerate-Value-Delivery-Through/default.aspx