SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
June 8, 1994
Date of Report (Date of earliest event reported)
MASCO CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-5794 38-1794485
(State of other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
21001 Van Born Road, Taylor, Michigan 48180
(address of principal executive offices) (Zip Code)
(313) 274-7400
(Registrant's telephone number, including area code)
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Item 5. OTHER EVENTS
On June 8, 1995, the Registrant announced that its Board of Directors has
determined that the divestiture of its Home Furnishings Group appears to be in
the Registrant's and its Shareholders' long-term strategic interest and thus has
directed the Registrant to explore alternatives with respect to such a possible
divestiture.
The press release issued by the Registrant is filed as Exhibit 99.a
hereto.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits. The following exhibit is filed herewith:
99.a Press Release dated June 8, 1995
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
MASCO CORPORATION
By:/s/Richard G. Mosteller
Richard G. Mosteller
Senior Vice President -
Finance
Date: June 8, 1995
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EXHIBIT INDEX
99.a Press Release dated June 8, 1995.
FOR IMMEDIATE RELEASE
June 8, 1995
MASCO CORPORATION TO EVALUATE DIVESTITURE OF
ITS HOME FURNISHINGS GROUP
MASCO CORPORATION announced today that its Board of Directors has
determined that the divestiture of its Home Furnishings Group appears to be in
the Company's and its shareholders' long-term strategic interest and thus has
directed the Company to explore alternatives with respect to such a possible
divestiture. The alternatives to be considered would include the creation of a
new independent public company through either an initial public offering or a
spin-off to MASCO shareholders or the sale of the Group. In each of these
examples MASCO would anticipate receiving substantial cash proceeds either from
a cash payment paid by the Group to MASCO prior to its becoming a public company
or from the sale of the Group.
Sales of the MASCO Home Furnishings Group in 1994 approximated $1.9
billion with operating profit of approximately $80 million. While these sales
represented 42 percent of MASCO's total 1994 sales, its operating profit
comprised less than 14 percent of MASCO's operating profit in 1994.
Richard A. Manoogian, Chairman of MASCO, stated:
"We acquired the leadership companies that comprise our Home Furnishings
Group over the last nine years and have melded them into the largest and finest
group of home furnishings companies in the world. We have invested substantial
amounts in these businesses to improve their operation, and today they are a
profitable, diverse, comprehensive and productive Group. Our decision to
evaluate a possible divestiture of these businesses is based on our belief that,
while they are the world leader in home furnishings, they will not achieve the
superior return criteria that we at MASCO have attained in the past in our other
businesses and have set as our goals for the future. A prospective divestiture
of our home furnishings businesses would enable us to better focus on our
traditional home improvement and building products businesses which have
historically achieved outstanding operating performance.
"Our goal in any divestiture of the Home Furnishings Group would be to
keep the companies intact as a single entity. We believe that the value of the
Group would be higher and its customers and employees would be better served by
maintaining a strong, combined entity."
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MASCO's Home Furnishings Group includes such well-known brands as
Henredon, Drexel Heritage, Lexington, Universal, Berkline, Bench Craft,
Maitland-Smith and Robert Allen Fabrics.
The Home Furnishings Group represents an investment of approximately $1.7
billion on MASCO CORPORATION's balance sheet. While the Company believes that
the book value of its investment in this Group is realizable in the longer term
in the ordinary course of business, the Company believes that the current value
of the Group is well in excess of $1 billion. Even then, depending upon the
nature and timing of a divestiture, the potential transactions, while
strengthening MASCO's balance sheet, may involve a substantial non-cash charge
to MASCO's financial statements.
MASCO CORPORATION manufactures home improvement, building and home
furnishings products for the home and family.
