Griffon Closes AMES North America Joint Venture, Receives $261M and Advances Pure-Play Strategy
GFF sits 42% above its 52-week low of $65.01.
Summary
Griffon Corporation has closed its joint venture combining its AMES U.S. and Canada businesses with Venanpri Tools, majority-owned by ONCAP. Griffon received $100 million in cash and $161 million in second lien debt, retaining a 43% equity stake in the new entity, Veritage Brands. This transaction follows the recent announcement of a separate joint venture for its Ames Australasia business. CEO Ronald Kramer highlighted this as a significant step in Griffon's strategic shift to become a pure-play building products company, focusing on its core residential and commercial door and ceiling fan businesses.
At the time of this announcement, GFF was trading at $92.27 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $4.2B. The 52-week trading range was $65.01 to $97.58. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.