XML 39 R28.htm IDEA: XBRL DOCUMENT
v3.26.1

Acquisition of American Woodmark (Tables) | 6 Months Ended
--- | ---
Jun. 28, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Schedule of Business Acquisitions, by Acquisition | The purchase consideration was $1,059.8 million, which was determined as follows:
Preliminary purchase consideration |  |
Exchange Ratio |  | 5.1500
American Woodmark shares to be acquired as of May 28, 2026 |  | 14,569,868
Number of MasterBrand shares to be issued based on Exchange Ratio |  | 75,034,820
Less: Fractional Shares settled in cash |  | 163
Whole MasterBrand shares issued |  | 75,034,657 |
MasterBrand share price at open of trading on May 28, 2026 |  | $ | 9.10 |
Purchase consideration transferred for American Woodmark shares(a) |  | $ | 682.8 |
Fair value of replacement awards attributable to the purchase consideration(b) |  | 9.5
Settlement of American Woodmark Existing Debt(c) |  | $ | 367.5 |
Total purchase consideration |  | $ | 1,059.8 |
(a) Includes an immaterial cash payment settled for fractional shares. (b) The estimated fair value of the replacement equity awards was $19.9 million, of which $9.5 million is attributable to service periods prior to the acquisition and is included in the purchase consideration. The remaining fair value is attributable to $6.0 million of awards that vested shortly after the merger close date based on change of control provisions and were immediately recognized as expense during the thirteen weeks ended June 28, 2026 and $4.4 million of awards that will vest in conjunction with future service and will be amortized over the remaining service period. (c) Represents gross settlement of American Woodmark’s Existing Debt as of May 28, 2026.
Business Combination, Recognized Asset Acquired and Liability Assumed | The following table sets forth the allocation of the purchase consideration to the assets acquired and liabilities assumed of American Woodmark, with the excess recorded to goodwill:
(U.S. Dollars presented in millions) |  |  |  |  |  |
Preliminary Net Assets Acquired |  |  |  |  |  | Fair Value
Cash and cash equivalents |  |  |  |  |  | $ | 37.2 |
Accounts receivable |  |  |  |  |  | 90.9 |
Inventories |  |  |  |  |  | 174.4 |
Other current assets |  |  |  |  |  | 47.7 |
Property, plant and equipment |  |  |  |  |  | 355.6 |
Operating lease right-of-use assets |  |  |  |  |  | 106.8 |
Other intangible assets |  |  |  |  |  | 356.0 |
Other assets |  |  |  |  |  | 61.8 |
|  |  |  |  |  | $ | 1,230.4 |
Accounts payable |  |  |  |  |  | $ | 45.5 |
Current operating lease liabilities |  |  |  |  |  | 32.4 |
Other current liabilities |  |  |  |  |  | 96.0 |
Deferred income taxes |  |  |  |  |  | 112.0 |
Operating lease liabilities |  |  |  |  |  | 74.4 |
Other non-current liabilities |  |  |  |  |  | 3.1 |
|  |  |  |  |  | $ | 363.4 |
Net Assets Acquired |  |  |  |  |  | $ | 867.0 |
Goodwill |  |  |  |  |  | 192.8 |
Purchase Consideration |  |  |  |  |  | $ | 1,059.8 |
Business Combination, Intangible Asset, Acquired, Finite-Lived and Indefinite-Lived | The estimated fair values of the identifiable intangible assets acquired, their estimated useful lives and the related valuation methodology are as follows:
(U.S. Dollars presented in millions) |  |  |  |  |  |
Asset Type |  | Fair Value |  | Useful Life |  | Valuation Methodology
Customer relationships |  | $ | 225.0 |  |  | 17 years |  | Multi-period excess earnings
Tradenames |  | 131.0 |  |  | Indefinite |  | Relief from royalty method
Total other intangible assets |  | $ | 356.0 |  |  |  |  |
Schedule of Business Combination, Pro Forma Information | Net sales and earnings related to the operations of American Woodmark that have been included in our condensed consolidated statements of income for the period from May 28, 2026 to June 28, 2026 are as follows:
(U.S. Dollars presented in millions) |  |  |  |  |  |  |  |
Net Sales |  |  |  |  |  | $ | 125.5 |  |  |
Net Loss |  |  |  |  |  | $ | (28.9) |  |  |
Pro forma financial information The following table summarizes, on a pro forma basis, the combined results of operations of American Woodmark and MasterBrand as though the acquisition and the related financing had occurred as of December 30, 2024, which is the first day of the Company’s fiscal 2025. The pro forma results are not necessarily indicative of either the actual consolidated results had the acquisition of American Woodmark occurred on December 30, 2024, nor are they indicative of future consolidated operating results.
|  | 13 Weeks Ended |  | 26 Weeks Ended
(U.S. Dollars presented in millions) |  | June 28, 2026 |  | June 29, 2025 |  | June 28, 2026 |  | June 29, 2025
Net Sales |  | $ | 1,041.0 |  |  | $ | 1,134.2 |  |  | $ | 1,996.5 |  |  | $ | 2,202.5 |
Net (Loss) Income |  | $ | (93.8) |  |  | $ | 41.5 |  |  | $ | (157.3) |  |  | $ | 13.4 |

X
- Definition Tabular disclosure of pro forma revenue and earnings for business combination or aggregate of series of individually immaterial business combinations. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-3 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-8 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 49 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479303/805-10-55-49 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -SubTopic 10 -Topic 805 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-2 Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(3) -SubTopic 10 -Topic 805 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-2 + Details
Name: | us-gaap_BusinessAcquisitionProFormaInformationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationAndAssetAcquisitionAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of finite-lived and indefinite-lived intangible assets acquired in business combination. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-1 + Details
Name: | us-gaap_FiniteLivedAndIndefiniteLivedIntangibleAssetsAcquiredAsPartOfBusinessCombinationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of business combination. Includes, but is not limited to, recognized asset and liability. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-3 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479303/805-10-55-41 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-8 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-2 Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479581/805-30-50-2 Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479581/805-30-50-1 Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-1 Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-2 + Details
Name: | us-gaap_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of asset acquired and liability assumed in business combination and recognized at acquisition date. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-1 + Details
Name: | us-gaap_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration