Delta Faucet Co., based in Carmel, has signed an agreement to acquire Kraus USA, based in New York, which manufactures sinks, faucets and other accessories for kitchens and bathrooms.
The deal is expected to close by the end of the first quarter of 2021. Thereafter, Kraus will operate as a subsidiary of Delta Faucet. Financial details of the transaction were not disclosed.
Kraus employs around 100 people worldwide. A Delta Faucet spokesman said that all Kraus US-based employees will receive a job offer and that there will be no changes to Delta Faucet’s workforce as a result of the contract.
Kraus, based in Port Washington, was founded in 2007 and manufactures kitchen and bathroom fittings and accessories. The company sells its products through a variety of retail websites including Lowe’s, Amazon, Home Depot, Menards, Costco, Wayfair, and others.
Delta manufactures kitchen and bathroom fittings, shower heads and related accessories under the Delta, Brizo and Peerless brands. The company employs 2,350 people worldwide. The production facilities are located in Greensburg. Jackson, Tennessee; Lapeer, Michigan; Morgantown, Kentucky; and Panyu, China.
“We are excited to add the Kraus team and skills to the organization,” said Ken Roberts, President of Delta Faucet, in a prepared statement. “The complementary products from Kraus, especially kitchen and wash basins as well as accessories, and the robust online presence will strengthen our market-leading offer and drive further growth.”
Zacks Equity Research wrote about the acquisition and the strong online presence of Kraus: “The pandemic has accelerated the transition to a more digital world and triggered changes in online shopping behavior that are likely to have lasting effects.”
Delta Faucet is a division of Livonia, Michigan, based Masco Corp., founded in 1929 by Alex Manoogian and two business associates. Originally called Masco Screw Products, the company manufactured machined parts for the automotive industry.
In 1952, Manoogian acquired the rights to a one-handle washless faucet. He redesigned the product and launched Delta Faucet two years later.