CINCINNATI (May 3, 2018) -- Griffon Corporation (“Griffon”) (NYSE: GFF) today announced that its subsidiary, Clopay Building Products (CPB), has entered into a definitive agreement to purchase CornellCookson, a leading manufacturer of rolling steel doors and grilles, for $180 million. After taking into account tax benefits resulting from the transaction, the effective purchase price is approximately $170 million.
The proposed acquisition significantly enhances Clopay’s scale in the sale of commercial and industrial doors by broadening its portfolio of products and customers.
“We are excited to add CornellCookson to the Clopay Building Products family,” said CPB president Steve Lynch. “They have an impeccable reputation for quality products, strong customer relationships, and an excellent management team. This is a strategic opportunity to bring two outstanding brands together, to better serve our customers with a complementary portfolio of products that is one of the most comprehensive in the commercial door industry.”
CornellCookson produces custom closure solutions found in stadiums, hospitals, hotels, museums, retail businesses, parking garages, and schools and universities. These include roll up doors, fire doors, security doors, accordion doors, and safety gates and grilles.
“Clopay is an organization whose values and culture align with our own,” said CornellCookson president Andrew Cornell. “We are both U.S. owned and operated companies looking for opportunities to expand. Clopay doesn’t make coiling doors, and Cornell doesn’t make overhead sectional garage doors. This acquisition is focused on growth and value. Our two companies working together, with the capital support of Griffon Corporation, is going to benefit our employees, our customers, and the industry. I wouldn’t be making this decision if I didn’t firmly believe it was in the best interest of our stakeholders.”
CornellCookson is expected to generate $200 million in net sales during its first year as part of CBP. The company operates facilities in Mountain Top, Pa. and Goodyear, Ariz., and has over 750 employees. Its brands have operated in the United States since 1828 and 1938. Products are sold through a network of more than 700 Cornell and Cookson dealers primarily to customers in North America and Mexico. The transaction is expected to be completed in June 2018, subject to customary closing conditions, including applicable regulatory approvals.
Following closing of the transaction, the two companies will continue to operate as they currently do, with Andrew Cornell serving as president of CornellCookson, reporting to Steve Lynch, president of Clopay Building Products.
There are no immediate plans to change the brand strategies for CornellCookson or Clopay. Both companies will maintain operations at their respective facilities.