NEW YORK–(BUSINESS WIRE)–Griffon Corporation (NYSE: GFF) has successfully completed its previously announced acquisition of Hunter Fan Company, the leading U.S. brand of residential ceiling fans for $845 million, subject to post-closing adjustments. Hunter is now part of Griffon’s Consumer and Professional Products (CPP) segment.
“Hunter is a fantastic addition to our family of iconic brands including AMES, True Temper and ClosetMaid,” said Ronald J. Kramer, Griffon’s Chief Executive Officer. “Hunter has strong strategic alignment with our Consumer and Professional Products segment and will enhance our product portfolio while accelerating our growth and online market presence. We are pleased to welcome the Hunter Fan team to Griffon.”
Griffon financed the Hunter Fan acquisition with a new $800 million Term Loan B facility with initial pricing of the Secured Overnight Financing Rate (SOFR) floor of 50 basis points plus a spread of 275 basis points, for a total interest rate of 325 basis points. The OID (Original Issue Discount) was 99.75. Additionally, there are “step-down” features for the rate tied to achieving lower leverage ratio levels. Griffon will use a combination of cash on hand and borrowings under its revolving credit facility to fund the balance of the purchase price, and related acquisition and debt expenses.
Griffon will provide updated full year fiscal 2022 guidance to reflect the addition of Hunter for part of Griffon’s 2022 fiscal year during its fiscal first quarter earnings conference call scheduled for February 1, 2022 at 8:30 AM ET.
BofA Securities and Goldman Sachs & Co. LLC acted as financial advisors to Griffon. BofA Securities arranged the financing for the acquisition. Dechert LLP acted as Griffon’s legal counsel.
Raymond James and Piper Sandler acted as financial advisors to Hunter, and Gibson, Dunn and Crutcher acted as Hunter’s legal counsel.
About Griffon Corporation
Griffon Corporation is a diversified management and holding company that conducts business through wholly-owned subsidiaries. Griffon oversees the operations of its subsidiaries, allocates resources among them and manages their capital structures. Griffon provides direction and assistance to its subsidiaries in connection with acquisition and growth opportunities as well as divestitures. In order to further diversify, Griffon also seeks out, evaluates and, when appropriate, will acquire additional businesses that offer potentially attractive returns on capital.
Griffon conducts its operations through two reportable segments:
- Consumer and Professional Products (“CPP”) is a leading North American manufacturer and a global provider of branded consumer and professional tools; residential, industrial and commercial fans; home storage and organization products; and products that enhance indoor and outdoor lifestyles. CPP sells products globally through a portfolio of leading brands including AMES, since 1774, Hunter, since 1886, True Temper, and ClosetMaid.
- Home and Building Product conducts its operations through Clopay Corporation (“Clopay”). Founded in 1964, Clopay is the largest manufacturer and marketer of garage doors and rolling steel doors in North America. Residential and commercial sectional garage doors are sold through professional dealers and leading home center retail chains throughout North America under the brands Clopay, Ideal, and Holmes. Rolling steel door and grille products designed for commercial, industrial, institutional, and retail use are sold under the CornellCookson brand.
Classified as a discontinued operation, Defense Electronics conducts its operations through Telephonics Corporation (“Telephonics”), founded in 1933, a globally recognized leading provider of highly sophisticated intelligence, surveillance and communications solutions for defense, aerospace and commercial customers.
For more information on Griffon and its operating subsidiaries, please see the Company’s website at www.griffon.com.
