Griffon Corporation Considers Sale of AMES Australia, Including Iconic Hills Hoist Brand

Griffon Corporation, a US-based conglomerate, is conducting a comprehensive review of strategic alternatives for its Australian subsidiary, AMES Australia, indicating a potential sale. The move is part of a broader corporate strategy to refocus Griffon's operations, and includes the iconic Hills Hoist clothesline brand.

Strategic Review Underway

Griffon Corporation has officially announced a "comprehensive review of strategic alternatives" for AMES Australia, signaling a potential divestiture of the subsidiary. This evaluation aligns with a broader corporate shift, as Griffon is also reviewing its United Kingdom operations, which are anticipated to be reported as discontinued operations.

On February 5, Griffon's chief executive, Ronald J. Kramer, stated that this strategic evaluation aligns with a "fundamental refocusing of our businesses into a pure-play building products company."

Kramer highlighted that AMES Australia has experienced significant growth since its acquisition by Griffon in 2010.

AMES Australia: Market Presence and Financial Outlook

AMES Australia holds a significant presence in the Australian and New Zealand markets. Its extensive product portfolio features a range of well-known garden and tool brands, including Pope hoses and fittings, Trojan tools, and the iconic Hills, renowned for the Hills Hoist clothesline. These products are widely distributed through major hardware retailers such as Bunnings and Mitre 10.

For the current financial year, AMES Australia is projected to generate $US40 million ($56 million AUD) in pre-tax earnings.

Advisory Engaged

To guide this strategic overhaul, Griffon Corporation has engaged Goldman Sachs to provide advisory services.