Press Release
Griffon Corporation to Sell Clopay Plastic Products to Berry Global for $475 Million
“We are pleased to announce the sale of Clopay Plastics. This transaction achieves our objectives of creating value for Griffon’s shareholders while also providing enhanced opportunities for growth and value creation for Clopay Plastics and its customers,” said Ronald J. Kramer, Griffon’s Chief Executive Officer. “Clopay Plastics is a well-recognized, trusted provider of specialty plastic films with a strong management team and outstanding employees. We appreciate their many years of contributions to Griffon, and know they will continue to thrive as a part of Berry Global.”
The Company will discuss this transaction during its previously
scheduled conference call to discuss fourth quarter and full-year 2017
financial results on
Forward-looking Statements
“Safe Harbor” Statements under the Private Securities Litigation Reform
Act of 1995: All statements related to, among other things, income
(loss), earnings, cash flows, revenue, changes in operations, operating
improvements, industries in which Griffon operates and
About
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
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”) andClosetMaid 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.
Classified as a discontinued operation,
For more information on Griffon and its operating subsidiaries, please see the Company’s website at www.griffon.com.
Griffon evaluates performance and allocates resources based on each segment's operating results before interest income and expense, income taxes, depreciation and amortization, unallocated amounts (mainly corporate overhead), restructuring charges, loss on debt extinguishment and acquisition related expenses, as well as other items that may affect comparability, as applicable ("Segment adjusted EBITDA", a non-GAAP measure). Griffon believes this information is useful to investors for the same reason.
The following table provides a reconciliation of Revenue and Segment
adjusted EBITDA for PPC for the trailing twelve months ended
CLOPAY PLASTICS |
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RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||
(in thousands) |
||||||||||||
(Unaudited) |
||||||||||||
Trailing Twelve | ||||||||||||
For the Year Ended | For the Nine Months Ended | Months Ended | ||||||||||
September 30, 2016 | June 30, 2017 | June 30, 2016 | June 30, 2017 | |||||||||
Revenue | $ | 480,126 | $ | 341,986 | $ | 353,786 | $ | 468,326 | ||||
EBITDA | ||||||||||||
Segment Operating Profit | $ | 20,313 | $ | 19,628 | $ | 13,569 | $ | 26,372 | ||||
Depreciation and amortization | 23,866 | 20,024 | 17,685 | 26,205 | ||||||||
Restructuring Charges | 5,900 | - | 5,900 | - | ||||||||
Segment Adjusted EBITDA | $ | 50,079 | $ | 39,652 | $ | 37,154 | $ | 52,577 | ||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20171116005748/en/
Source:
Company:
Griffon Corporation
Brian
G. Harris, 212-957-5000
SVP & Chief Financial Officer
or
Investor
Relations:
ICR Inc.
Michael
Callahan, 203-682-8311
Senior Vice President