Masonite International Corporation (B): Will KKR Slam the Door? Harvard Case Solution & Analysis

It absolutely was February 16, 2005 and Edgar James, from Merrill Lynch, among the top investment banks, was reviewing the file about the leveraged buyout (LBO) of Masonite International Corporation (Masonite). A few months previously, Kohlberg, Kravis and Roberts (KKR), one of the earliest and biggest private equity firms, had teamed up with Masonite's senior managers and offered to take the firm private via a US$2.52 billion LBO. A shareholder meeting to vote on the trade was scheduled in less than 48 hours, but it was very likely that the deal would be voted down. The majority of the major investors had already declared that they'd reject the transaction, arguing that the premium offered by KKR was not sufficient.

Masonite International Corporation (B) Will KKR Slam the Door Case Study Solution

As the head of Merrill Lynch's team working on the LBO, Edgar had to finalize his recommendation before discussing to the Board of Directors of Masonite. But Masonite was still among the best-positioned companies in the business, with strong earnings and cash flows. Would this be enough to entice KKR to increase their offer?

PUBLICATION DATE: July 25, 2011 PRODUCT #: TB0273-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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