Griffon Closes AMES Australasia JV, Receives $181M Cash, $49M PIK Note, Repays $285M Debt
GFF sits 38% above its 52-week low of $65.01.
Summary
Griffon closed the AMES Australasia joint venture, receiving $181M cash and a $48.6M PIK note, and used proceeds to repay its $285M Term Loan B, strengthening its balance sheet.
Key Events · M&A and Partnerships · GFF
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AMES Australasia JV Closed
On July 31, 2026, Griffon completed the sale of its AMES Australasia business to a joint venture, receiving AUD $258M (USD $181M) cash, a AUD $69.3M (USD $48.6M) PIK note, and a 49% equity interest.
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$285M Term Loan B Repaid
Griffon used the JV cash proceeds and revolver borrowings to repay the entire $285 million outstanding under its Term Loan B, eliminating that debt obligation.
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Pro Forma Financial Impact
Pro forma statements show the remaining business generated $1.8B revenue and $245M net income in fiscal 2024, with the JVs expected to add equity earnings; the balance sheet reflects $280.9M total cash proceeds and $209.7M in PIK notes receivable.
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Side Letter Amendments
A side letter novates the equity interest, PIK note, and shareholder rights to other Griffon subsidiaries; Griffon will advance certain financing fees to be reimbursed by the JV; the independent director appointment is delayed to 30 business days post-closing.
Analysis · GFF · Manufacturing
Griffon finalized the sale of its AMES Australasia business into a joint venture, receiving $181 million in cash and a $48.6 million PIK note while retaining a 49% stake. The company immediately used the proceeds, along with revolver borrowings, to repay its entire $285 million Term Loan B, significantly deleveraging its balance sheet. The transaction completes the exit from non-core operations, sharpening Griffon's focus on its building products segment. Pro forma financials show the remaining business generated $1.8 billion in revenue and $245 million in net income in fiscal 2024, with the joint ventures expected to contribute additional earnings. The debt repayment reduces interest costs and financial risk, though the PIK note and equity stakes introduce new, albeit subordinated, exposures.
At the time of this filing, GFF was trading at $89.40 on NYSE in the Manufacturing sector, with a market capitalization of approximately $4.1B. The 52-week trading range was $65.01 to $98.37. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.