NEW YORK--(BUSINESS WIRE)--Griffon Corporation (NYSE:GFF) announced that its subsidiary, Clopay Building Products Company, Inc. has entered into a definitive agreement to acquire CornellCookson, Inc., a leading US manufacturer and marketer of rolling steel door and grille products designed for commercial, industrial, institutional, and retail use, for $180 million. After taking into account tax benefits resulting from the transaction, the effective purchase price is approximately $170 million.

“CornellCookson is a highly strategic addition to Griffon’s Home and Building Products segment, complementing Clopay’s existing portfolio of residential and commercial sectional doors with leading brands and products,” said Ronald J. Kramer, Griffon’s Chairman and CEO. “This acquisition will expand our existing footprint in the commercial channel, and strengthen our relationships with professional dealers and installers. With a legacy of innovation, quality, and customer service going back to 1828, the Cornell and Cookson names will be right at home within our growing family of iconic brands including Clopay, AMES, True Temper, and ClosetMaid.”

The acquisition is expected to be financed through cash on hand. The acquisition is subject to customary closing conditions, and is expected to close in June 2018.

Griffon and CornellCookson have structured the acquisition such that it will be treated as an asset purchase for tax purposes. This election will generate a tax benefit with an estimated present value of more than $10 million for Griffon and its shareholders.

In the first full year of operations, Griffon expects CornellCookson to contribute $200 million in net sales and $0.15 in earnings per share.

Baird is acting as Griffon’s financial advisor and Dechert is acting as Griffon’s legal counsel for the acquisition of CornellCookson.

About Griffon Corporation

Griffon 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 in connection with 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.

Headquartered in New York, N.Y., the Company was founded in 1959 and is incorporated in Delaware. Griffon is listed on the New York Stock Exchange and trades under the symbol GFF.

Griffon currently conducts its operations through two reportable segments:

Home & Building Products consists of three companies, The AMES Companies, Inc. (“AMES”), Clopay Building Products Company, Inc. (“CBP”) and ClosetMaid LLC (“ClosetMaid”):

• AMES, founded in 1774, is the leading U.S. manufacturer and a global provider of long-handled tools and landscaping products for homeowners and professionals.
• CBP, since 1964, is a leading manufacturer and marketer of residential and commercial garage doors and sells to professional dealers and some of the largest home center retail chains in North America.
• ClosetMaid, founded in 1965, is a leading North American manufacturer and marketer of closet organization, home storage, and garage storage products, and sells to some of the largest home center retail chains, mass merchandisers, and direct-to-builder professional installers.

Telephonics Corporation, founded in 1933, is recognized globally as a 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.