Griffon purchases clothing storage maker ClosetMaid from Emerson
Griffon Corp. (NYSE: GFF) has reached a deal to buy ClosetMaid, a provider of home organization and storage materials, from Emerson (NYSE: EMR) for $260 million. ClosetMaid will join Griffon’s portfolio of brands including AMES, True Temper and Clopay.
Manufacturers of home goods are benefiting from trends in the real estate market, leveraging the increase in purchases of new residences. Related deals include: Sycamore Partners’ acquisition of NBG Home, a wall goods and décor designer; Hellman & Friedman LLC’s purchase of SnapAV, a manufacturer of home theater electronics, and Z Capital Partners LLC’s backing of fireplace maker Twin-Star International Inc.
ClosetMaid was founded in 1965 as a manufacturer of home storage systems for use in bedrooms, kitchens, family rooms, laundry rooms, home offices, and garages. The Ocala, Florida-based company supplies a variety of organization materials, such as: wire shelving, fixed mount hardware, closet rod hardware, adjustable mount hardware, closet accessories, wood closet organizers, stackable storage cabinets, laminate storage furniture, replacement parts, garage storage and cabinets, and utility cabinets.
“This acquisition expands our existing footprint in home centers and expands our customer relationships to include the direct to builder and mass merchant, specialty and hardware channels,” states Griffon CEO Ronald Kramer
Griffon is a New York-based holding company that operates through several subsidiaries. The company consists of a home and building products division, which includes Ames and Clopay Building Products Co. Inc. The buyer’s other business segments include Telephonics Corp. and Clopay Plastic Products Co. Inc. In July 2014, Ames acquired a division of Illinois Tool Works Inc. (NYSE: ITW) for $36 million. Griffon is currently exploring strategic alternatives for Coplay Plastics after receiving unsolicited inquiries from qualified parties, according to the company.
Emerson designs products and offers a variety of services to industrial, commercial, and consumer markets worldwide. The St. Louis, Missouri-based company operated ClosetMaid from its commercial and residential solutions segment. The division provides storage systems, appliances and tools for professionals and homeowners. The ClosetMaid transaction, which is expected to close by September 2017, is the “final step in the strategic portfolio repositioning” Emerson began two years ago.
Citigroup Inc. NYSE: C) is serving as financial adviser to Emerson, while Davis Polk & Wardwell is acting as legal counsel. Goldman Sachs & Co. LLC (NYSE: GS) is acting as financial adviser to Griffon, and will assist the buyer with exploring strategic alternatives for Clopay Plastics. Deutsche Bank AG (NYSE: DB) has provided committed financing for the acquisition of ClosetMaid. Dechert LLP is acting as legal counsel to Griffon’s legal counsel for both the ClosetMaid acquisition, and on the potential strategic actions with Clopay Plastics.