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MASCO CORPORATION AND MASCO INDUSTRIES, INC. IN PARTIAL AFFILIATE RESTRUCTURING

 TAYLOR, Mich., Feb. 2 /PRNewswire/ -- Masco Corporation (NYSE: MAS) and Masco Industries, Inc. (NASDAQ-NMS: MASX) announced today that they have entered into agreements to partially restructure their affiliate relationships through transactions that will reduce Masco Corporation's common equity ownership of Masco Industries from 46 percent to approximately 35 percent and result in Masco Industries' acquisition of Masco Corporation's investment in Emco Limited.
 Masco Industries will acquire from Masco Corporation 10 million of Masco Industries common shares, Masco Corporation's investment in Emco Limited and $77.5 million of Masco Industries 12-percent exchangeable preferred stock. In exchange, Masco Corporation will receive $87.5 million in cash, $100 million of Masco Industries 10-percent exchangeable preferred stock and seven-year warrants to purchase 10 million of Masco Industries common shares at $13 per share. The transferable warrants will not be exercisable by Masco Corporation if an exercise would increase Masco Corporation's common equity ownership of Masco Industries to above 35 percent. Masco Corporation has also agreed to purchase from Masco Industries at its request within two years up to $200 million aggregate amount of additional exchangeable preferred stock and subordinated debentures.
 These transactions partially accomplish Masco Corporation's previously announced objective of simplifying its corporate structure by de-emphasizing affiliate relationships. Masco Industries believes that not only are these transactions attractive financially, but they also enhance its ability to further develop other business opportunities with Emco.
 Valued at approximately $260 million, these transactions are subject to several conditions including customary regulatory filings, are scheduled to close by the end of March and will not result in any currently reportable gain to either company.
 Emco Limited is a major Canadian manufacturer and distributor of building and energy-related products with annual sales of approximately $800 million. Masco Industries and Emco have recently entered into several business arrangements involving the marketing, exchange of manufacturing technology and product know-how for certain of each company's respective products. Upon completion of the above transactions, Masco Industries will own approximately 44 percent of the common stock and convertible debentures of Emco. Late last year Masco Corporation purchased Emco's faucet manufacturing operations which included the rights to manufacture and sell Delta and Peerless faucets in Canada.
 Masco Corporation manufactures building, home improvement and home furnishings products for the home and family. Masco Industries manufactures custom engineered and other commercial specialty industrial products.
 -0- 2/2/93
 /CONTACT: John C. Nicholls Jr., treasurer, Masco Corporation, 313-274-7400/
 (MAS MASX)


CO: Masco Corporation; Masco Industries, Inc.; Emco Limited ST: Michigan, Ontario IN: HOU SU: RCN TNM

SB-ML -- DE021 -- 2042 02/02/93 16:00 EST
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Publication:PR Newswire
Date:Feb 2, 1993
Words:427
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