As industrial conglomerate Griffon Corp. (GFF) eyes options for its assets with the help of Goldman, Sachs & Co., activist investor Voss Capital LLC is confident the company can get deals done.
Both strategics and large private equity firms focused on industrials and building products would be interested in the company’s home and building products unit or the whole business, for a large multiple of sales, Voss Capital chief investment officer Travis Cocke told The Deal.
“They could maximize value by selling the two units separately,” he said. “PE would buy the whole thing and then sell pieces of it.”
The comments come after Griffon on May 16 launched a strategic review, retaining Goldman as financial adviser and Dechert LLP as counsel. In April, the company agreed to sell its defense unit, Telephonics Corp., for $330 million in a cash deal. The deal followed a February proxy contest which saw nearly 80% of non-insider-controlled shares voted to elect a dissident director candidate nominated by Voss Capital to the board of the New York-based mini-industrial conglomerate. Voss owns about 2.5% of Griffon.
Cocke launched a campaign in January pushing Griffon to complete a sale of its defense electronics business and explore strategic alternatives for its home and building products unit, which houses its Clopay residential garage doors unit and a CornellCookson commercial rolling steel door operation. Griffon also operates a separate Ames Cos. division, which manufactures tools and products for home storage and landscaping.
The company said it expects to focus on near-term value creation, suggesting asset sales, or a sale of the company, could happen by the end of the year. The company did not give a firm timeline.
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