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KOHLER CO. ANNOUNCES CLOSURE OF CANAC KITCHEN CABINETRY BUSINESS
KOHLER, Wisconsin - September 25, 2008 - Kohler Co. announced today that it will close its Canac kitchen cabinetry business, citing the United States' weak housing market, recent construction softness in Canada, and escalating costs for raw materials and logistics costs as the driving reasons for the business closure.
Canac has been experiencing a decline in orders for some time and competes in an already crowded and price-sensitive kitchen cabinetry marketplace that itself has been in decline. Canac's primary customers are in North America, including big builders in the new home construction market and developers in the multifamily sector. A full business closure is anticipated by year end.
"We explored all possible business options with our first preference being the sale of Canac assets to an interested buyer. However, that option never garnered any serious interest with the potential buyers," said Canac President Ralph Howard. "The last option we considered was closing the Canac business altogether, but unfortunately that is the reality we are now facing. We realize this decision impacts our associates significantly. It was a very difficult decision for us to make."
Kohler, which acquired Canac in 1996, stressed that this decision to exit the kitchen cabinetry business is based purely on the sub-par performance of its Canac business. The company's other brands participating in the housing industry, including Kohler plumbing, Sterling plumbing and Robern mirrored bathroom cabinetry, are not impacted.
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