Griffon Corporation (“Griffon” or the “Company”) (NYSE: GFF) has successfully completed its previously announced acquisition of Hunter Fan Company (“Hunter Fan” or “Hunter”), the leading U.S. brand of residential ceiling fans for $845 million, subject to post-closing adjustments. Hunter is now part of Griffon’s Consumer and Professional Products (CPP) segment.
“Hunter is a fantastic addition to our family of iconic brands including AMES, True Temper and ClosetMaid,” said Ronald J. Kramer, Griffon’s Chief Executive Officer. “Hunter has strong strategic alignment with our Consumer and Professional Products segment and will enhance our product portfolio while accelerating our growth and online market presence. We are pleased to welcome the Hunter Fan team to Griffon.”
Griffon financed the Hunter Fan acquisition with a new $800 million Term Loan B facility with initial pricing of the Secured Overnight Financing Rate (SOFR) floor of 50 basis points plus a spread of 275 basis points, for a total interest rate of 325 basis points. The OID (Original Issue Discount) was 99.75. Additionally, there are “step-down” features for the rate tied to achieving lower leverage ratio levels. Griffon will use a combination of cash on hand and borrowings under its revolving credit facility to fund the balance of the purchase price, and related acquisition and debt expenses.
Griffon will provide updated full year fiscal 2022 guidance to reflect the addition of Hunter for part of Griffon’s 2022 fiscal year during its fiscal first quarter earnings conference call scheduled for February 1, 2022 at 8:30 AM ET.
BofA Securities and Goldman Sachs & Co. LLC acted as financial advisors to Griffon. BofA Securities arranged the financing for the acquisition. Dechert LLP acted as Griffon’s legal counsel.
Raymond James and Piper Sandler acted as financial advisors to Hunter, and Gibson, Dunn and Crutcher acted as Hunter’s legal counsel.