Emerson Agrees to Sell ClosetMaid Business to Griffon Corporation
8 September 2017
Emerson announced it has entered into a definitive agreement to sell its ClosetMaid business to Griffon Corporation (NYSE: GFF), a New York-based diversified management and holding company, for $260 million.
“The sale of ClosetMaid represents the final step in the strategic portfolio repositioning we began two years ago,” said Emerson Chairman and Chief Executive Officer David N. Farr. “With Griffon, we have found a good home for ClosetMaid. We believe the combination of ClosetMaid with Griffon results in the best fit for ClosetMaid’s customers and employees and will create maximum value for Emerson’s shareholders. ClosetMaid has been a strong performer for Emerson over the years, and I am grateful to all ClosetMaid employees for their commitment to growth and operational excellence.”
Currently part of Emerson’s Commercial & Residential Solutions business, ClosetMaid is based in Ocala, Florida, and employs approximately 1,500 people across the globe. For more than 50 years, ClosetMaid has been a leader in home organization and storage systems.
The transaction is expected to close within 30 days and result in minimal net earnings and earnings per share impact. Emerson expects to realize approximately $180 million in after-tax cash proceeds from the sale.
For this transaction, Emerson engaged Citi as its financial advisor and Davis Polk & Wardwell as legal counsel.