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Griffon Corporation Announces Acquisition of Pope by AMES Australasia

Posted on by darion





Griffon (NYSE: GFF) announced that its subsidiary The AMES Companies has acquired Pope from The Toro Company. Pope is an Australian supplier of residential irrigation products. This marks AMES’ seventh acquisition in Australia since 2013 and expands its product portfolio in the Australian market. Pope is expected to increase annual revenue by approximately $25 million and positively impact Griffon’s earnings in its first full year. Financial details of the acquisition were not disclosed.

Positive


  • Pope is expected to bring in annual earnings of $25 million.


  • This is AMES’ seventh acquisition in Australia since 2013 and strengthens its presence in the market.


  • This acquisition is expected to have a positive impact on Griffon’s earnings growth in the first year.


The acquisition of Pope by AMES Australasia, a subsidiary of Griffon Corporation, is a strategic move to expand Griffon’s product portfolio and market presence in Australia. The acquisition is expected to contribute approx. 25 million dollars in annual revenues and will be accretive to the company’s profits in the first full year. For investors, this means a positive short-term impact on Griffon’s finances, as the immediate increase in revenue should reflect positively on the company’s earnings reports.

Additionally, this is AMES’ seventh acquisition in Australia since 2013, demonstrating a strong and focused growth strategy in the region. This acquisition trend may signal to investors that Griffon is committed to increasing its market share and exploiting synergies in the home and construction products segment. However, the undisclosed financial terms of the transaction may raise concerns about potential overvaluation or integration costs.

Investors should also consider the broader economic environment and the potential risks associated with integrating a new acquisition. If Pope’s integration goes smoothly, it could strengthen Griffon’s market position. Conversely, any integration challenges may temporarily negatively impact company performance.

From a market perspective, the acquisition of Pope by AMES Australasia suggests a strategic effort to gain a larger share of the Australian domestic water treatment market. Pope is an established brand in this niche and its inclusion in the AMES portfolio could enhance AMES’ product offering and brand recognition in the region. This move could strengthen AMES’ competitive position against local and international players in the Australian market.

It is important for retail investors to understand the competitive dynamics in the home irrigation market. This sector is characterized by seasonality and regional preferences that may impact revenue consistency. Nevertheless, Pope’s established market presence and brand loyalty are likely advantages that AMES can leverage to achieve continued revenue growth.

Moreover, the acquisition is consistent with Griffon’s broader strategy to diversify its portfolio and pursue growth opportunities. This strategic alignment bodes well for Griffon’s long-term growth prospects, provided it can effectively manage and integrate its acquisitions to achieve synergies and operational efficiencies.









NEW YORK–(BUSINESS WIRE)– Griffon Corporation (NYSE: GFF) (the “Company” or “Griffon”) announced that its subsidiary, The AMES Companies, Inc. (“AMES”) has acquired Pope, a leading Australian supplier of residential irrigation products, from The Toro Company (NYSE:TTC). This is AMES’ seventh acquisition in Australia since 2013 and continues to expand the AMES product portfolio in the Australian market. Pope is expected to contribute approximately 25 million dollars in annual revenues and increase Griffon’s profits in the first full year of ownership. The financial terms of the transaction were not disclosed.

About Griffon Corporation

Griffon is a diversified management and holding company that operates through wholly owned subsidiaries of Griffon. Griffon oversees the operations of its subsidiaries, allocates resources among them and manages their capital structures. Griffon provides leadership 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 seeks out, evaluates and, where appropriate, acquires additional businesses that offer potentially attractive returns on capital.

Griffon conducts its business through two reporting segments:

  • Home and construction products operates through Clopay Corporation (“Clopay”). Founded in 1964, Clopay is the largest manufacturer and marketer of garage doors and steel roller doors in North America. Sectional garage doors for residential and commercial buildings are sold through professional dealers and leading retail chains throughout the country North America under the brands Clopay, Ideal and Holmes. Steel rolling door and grille products for commercial, industrial, institutional and retail use are sold under the Cornell and Cookson brands.

  • Consumer and Professional Products (“CPP”) is a leading global supplier 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 worldwide through a portfolio of leading brands, including AMESsince 1774 Huntersince 1886, True Temper and ClosetMaid.

More information about Griffon and its subsidiaries can be found on the Company’s website at www.griffon.com.

Business:

Brian G. Harris

Senior Vice President and Chief Financial Officer

Griffon Corporation

(212) 957-5000

[email protected]

Investor Relations:

Michael Callahan

Managing director

ICR Sp.

(203) 682-8311

Source: Griffon Corporation








Frequently asked questions



What did Griffon (GFF) announce about Pope?

Griffon announced that its subsidiary, The AMES Companies, has acquired Pope, an Australian supplier of home irrigation products, from The Toro Company.


How much income will the Pope donate to Griffon (GFF)?

The pope is expected to bring in an annual income of about $25 million.


When can the Pope acquisition be expected to impact Griffon’s (GFF) earnings?

The acquisition is expected to be positively accretive to Griffon’s earnings in the first full year of acquisition.


How many acquisitions had AMES made in Australia before Pope?

Prior to acquiring Pope, AMES had made six acquisitions in Australia since 2013.