Griffon To Acquire Hunter Fan For $845M

The AMES Companies, Inc., a subsidiary of Griffon Corp 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 Griffon portfolio 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.