Benzinga | Dec 20, 2021 01:29PM EST

Griffon To Acquire Hunter Fan For $845M

* The AMES Companies, Inc., a subsidiary of Griffon Corp (NYSE:GFF), has agreed to acquire Hunter Fan Company from MidOcean Partners for $845 million. Hunter Fan is a residential ceiling, commercial, and industrial fans provider.

* The purchase price represents an ~9.4 times multiple of EBITDA from the first full fiscal year of operation. The acquisition is to be immediately accretive to earnings and cash flow.

* Griffon expects Hunter to contribute $400 million in revenue and $90 million of EBITDA, excluding synergies, resulting in earnings accretion of at least $0.50 per share in the first full fiscal year of operation.

* "The acquisition of Hunter, along with the expected sale of Griffon's Defense Electronics business, marks a repositioning and strengthening of the Griffonportfolio which will further accelerate our growth, increase shareholder value, and is an effective use of our capital," said Griffon's CEO Ronald J. Kramer.

* Griffon intends to finance the acquisition through cash on hand, availability under a revolving credit facility, and committed debt financing.

* Griffon held cash and equivalents of $249 million as of September 30, 2021.

* The company expects to close the deal by the end of January 2022.

* Price Action: GFF shares are trading lower by 2.78% at $24.48 on the last check Monday.