NEW YORK, June 27, 2022–(BUSINESS WIRE)–The Board of Directors of Griffon Corporation (NYSE: GFF) (the “Company” or “Griffon”) has declared a special cash dividend of $2.00 per share payable on July 20, 2022 to shareholders of record on closing July 8, 2022. The special dividend, combined with the three quarterly dividends of $0.09 announced earlier this fiscal year, will result in total fiscal 2022 dividends paid of $2.27 per share until July 20, 2022.
In addition, Griffon has prepaid $300 million of principal on its $800 million B Term Credit Facility effective today, June 27, 2022. This prepayment permanently reduces the outstanding term loan B.
Funding for the special dividend and principal repayment of Term Loan B will come from the proceeds of the sale of Telephonics and the Company’s free cash flow.
“With the closing of the Telephonics sale, we are immediately returning capital to shareholders through this special dividend of $2 per share,” said Ronald J. Kramer, Chairman and CEO of Griffon. “This dividend, along with the $300 million repayment of our Term B Credit Facility, demonstrates our commitment to unlocking shareholder value by delivering immediate returns while continuing to strengthen our balance sheet.”
Safe Harbor Statements
“Safe Harbor” statements under the Private Securities Litigation Reform Act of 1995: all statements relating to, among other things, revenue (loss), profit, cash flow, revenue, changes in operations, improvements operations, the industries in which Griffon operates and the United States and world economies that are not historical are hereby identified as “forward-looking statements” and may be indicated by words or phrases such as “anticipates “, “supports”, “plans”, “projects”, “expects”, “believes”, “should”, “would”, “could”, “hopes”, “plans”, “direction is d ‘opinion’, ‘may’, ‘will’, ‘estimate’, ‘intends’, ‘explore’, ‘opportunities’, the negative of these expressions, the use of the future tense and similar words or expressions. These forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. These risks and uncertainties include, among others: current economic conditions and uncertainties in the housing, credit and capital markets; Griffon’s ability to achieve anticipated cost savings from cost control, restructuring, integration and divestiture initiatives; the ability to identify and successfully realize and integrate value-added acquisition opportunities (including, in particular, the integration of the acquisition of Hunter Fan); increased competition and pricing pressures in the markets served by Griffon’s operating companies; the ability of Griffon’s operating companies to expand into new geographic and product markets, and to anticipate and respond to customer demands for new products and product improvements and innovations; increases in the cost or lack of availability of raw materials such as resin, wood and steel, components or finished goods purchased, including any potential cost or availability impacts resulting from pricing; changes in customer demand or the loss of a significant customer at any of Griffon’s operating companies; the potential impact of seasonal variations and uncertain weather conditions on certain Griffon businesses; political events that could impact the global economy; a downgrade in Griffon’s credit ratings; changes in international economic conditions, including interest rate and currency exchange rate fluctuations; the reliance of certain Griffon businesses on particular third-party vendors and manufacturers to meet customer demands; the relative range of products and services offered by Griffon’s businesses, which impacts margins and operating efficiency; short-term capacity constraints or prolonged excess capacity; unforeseen developments in contingencies, such as litigation, regulatory and environmental matters; Griffon’s ability to adequately protect and maintain the validity of patents and other intellectual property rights; the cyclical nature of the business of some of Griffon’s operating companies; potential terrorist threats and actions and their impact on the global economy; the impact of COVID-19 on the U.S. and global economy, including business interruptions, job reductions, and an increase in business and operating facility failures, particularly among our customers and suppliers; Griffon’s ability to service and refinance its debt; and the impact of recent and future legislative and regulatory changes, including, without limitation, changes in tax laws. These statements reflect the Company’s beliefs regarding future events and are subject to these and other risks as previously disclosed in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date they are made. Griffon undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Griffon Corporation
Griffon is a diversified management and holding company that operates through wholly-owned subsidiaries. Griffon oversees the operations of its subsidiaries, allocates resources among them and manages their capital structures. Griffon provides direction and assistance to its subsidiaries in the context of acquisition and growth opportunities as well as in the context of divestments. In order to further diversify, Griffon seeks, evaluates and, where appropriate, will acquire additional businesses that offer potentially attractive returns on capital.
Griffon operates through two reportable segments:
Consumer and Professional Products (“CPP”) is a leading North American manufacturer and global supplier of branded consumer and professional tools; residential, industrial and commercial fans; household storage and organization products; and products that enhance indoor and outdoor lifestyles. CPP sells products worldwide through a portfolio of leading brands including AMES, since 1774, Hunter, since 1886, True Temper and ClosetMaid.
Home and building products does business through Clopay Corporation (“Clopay”). Founded in 1964, Clopay is the largest manufacturer and distributor of steel garage doors and rolling doors in North America. Residential and commercial sectional garage doors are sold through professional dealers and major home center retail chains across North America under the Clopay, Ideal and Holmes brand names. Steel rolling gate and door products designed for commercial, industrial, institutional and retail use are sold under the CornellCookson brand.
For more information about Griffon and its operating subsidiaries, please visit the company’s website at www.griffon.com.
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Brian G. Harris
SVP and CFO