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Masco’s stock surges after sale of cabinetry business for $1 billion

Shares of Masco Corp. rallied 1.9% in premarket trading Friday, after the home improvement products company said it will sell its Masco Cabinetry business to ACProducts Inc. in a deal valued at $1 billion. Under terms of the day, the sale price includes $850 million in cash and $150 million in preferred stock, which will have a coupon of 8% that increases to 10% in the third year. The deal is expected to close int the first quarter of 2020. Masco said Masco Cabinetry will be accounted for as discontinued operations for the fourth quarter. The company expects 2019 earnings per share from continuing operations is expected to be $2.12 to $2.16 and adjusted EPS of $2.19 to $2.23. The FactSet consensus for 2019 EPS was $2.55. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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