Case Study: RSI Home Products

Cabinet makers combine to create billion-dollar home products manufacturing enterprise

O’Melveny represented RSI Home Products in its definitive agreement and plan of merger with American Woodmark Corporation. Under the terms of the agreement, the implied enterprise value for RSI is approximately US$1.075 billion, including US$140 million in American Woodmark common stock to be issued to RSI shareholders, approximately US$346 million in net cash to be paid to RSI shareholders, subject to customary working capital adjustments, and approximately US$589 million of RSI debt to be assumed by American Woodmark.  The O’Melveny team representing RSI—a long-time client of the firm’s, dating back more than 20 years—provided advice spanning M&A, tax, financing, and executive compensation.