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Griffon Corporation, a prominent US conglomerate, recently announced it is embarking on a “comprehensive review of strategic alternatives” for its subsidiary, AMES Australia. This division, known for housing the well-recognized clothesline brand Hills, is under consideration for potential sale.
On February 5, Griffon’s CEO, Ronald J. Kramer, addressed investors, highlighting the growth trajectory of AMES Australia, which has evolved from a modest business acquired in 2010 into a market leader across Australia and New Zealand. “We aim to discover opportunities that will empower our exceptional team in Australia to elevate the business further while simultaneously enhancing shareholder value,” Kramer stated.
This strategic evaluation underscores Griffon’s broader initiative to streamline its operations, with a focus on transitioning into a specialized building products company. Through this refocusing, Griffon seeks to ensure sustained growth and profitability in its core business areas.
“We will identify opportunities for our exceptional team in Australia to take the business to the next level while creating value for our shareholders.”
He added the move was part of a “fundamental refocusing of our businesses into a pure-play building products company”.
The company is also putting AMES’s United Kingdom operations through a similar process, and said the brands will be reported as discontinued operations from now on.
AMES Australia is expected to generate $US40 million ($56 million) in pre-tax earnings this financial year, according to Griffon.
The company has a host of garden brands under its umbrella, including Pope hoses and fittings, Trojan tools, and Hills.
The latter is the maker of the iconic Hills Hoist clothesline, which were a mainstay of suburban homes for decades and are still seen in back yards to this day.
Many of AMES’s products are sold at hardware giants Bunnings and Mitre 10.
Griffon said it is being advised by Goldman Sachs on the strategic overhaul.
nine.com.au has contacted AMES and Goldman Sachs for comment about what the implications will be for Australian customers.
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