Emerson Agrees to Sell ClosetMaid Business to Griffon Corporation
September 05 2017 - 05:06PM
Business Wire
Emerson (NYSE: EMR) today announced it has entered into a
definitive agreement to sell its ClosetMaid business to Griffon
Corporation (NYSE: GFF), a New York-based diversified management
and holding company, for $260 million.
“The sale of ClosetMaid represents the final step in the
strategic portfolio repositioning we began two years ago,” said
Emerson Chairman and Chief Executive Officer David N. Farr. “With
Griffon, we have found a good home for ClosetMaid. We believe the
combination of ClosetMaid with Griffon results in the best fit for
ClosetMaid’s customers and employees and will create maximum value
for Emerson’s shareholders. ClosetMaid has been a strong performer
for Emerson over the years, and I am grateful to all ClosetMaid
employees for their commitment to growth and operational
excellence.”
Currently part of Emerson’s Commercial & Residential
Solutions business, ClosetMaid is based in Ocala, Florida, and
employs approximately 1,500 people across the globe. For more than
50 years, ClosetMaid has been a leader in home organization and
storage systems.
The transaction is expected to close within 30 days and result
in minimal net earnings and earnings per share impact. Emerson
expects to realize approximately $180 million in after-tax cash
proceeds from the sale.
For this transaction, Emerson engaged Citi as its financial
advisor and Davis Polk & Wardwell as legal counsel.
About Emerson
Emerson (NYSE: EMR), headquartered in St. Louis, Missouri (USA),
is a global technology and engineering company providing innovative
solutions for customers in industrial, commercial and residential
markets. Our Emerson Automation Solutions business helps process,
hybrid, and discrete manufacturers maximize production, protect
personnel and the environment while optimizing their energy and
operating costs. Our Emerson Commercial & Residential Solutions
business helps ensure human comfort and health, protect food
quality and safety, advance energy efficiency, and create
sustainable infrastructure. For more information, visit
Emerson.com.
About ClosetMaid
ClosetMaid, an industry leader in home organization and storage
systems since 1965, is a business of Emerson™. Over
ClosetMaid’s 50-year history, ClosetMaid has helped people achieve
their own state of organization with innovative and popular storage
products such as: MasterSuite®, Impressions™, SpaceCreations®,
ShelfTrack®, Selectives™ and SuiteSymphony™. For more
information, visit www.closetmaid.com.
Forward-Looking and Cautionary Statements
Statements in this press release that are not strictly
historical may be “forward-looking” statements, which involve risks
and uncertainties, and Emerson undertakes no obligation to update
any such statements to reflect later developments. These risks and
uncertainties include economic and currency conditions, market
demand, pricing, protection of intellectual property, and
competitive and technological factors, among others, as set forth
in the Company’s most recent Annual Report on Form 10-K and
subsequent reports filed with the SEC.
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For EmersonMark Polzin,
314-982-1758mark.polzin@fleishman.com
Emerson Electric (NYSE:EMR)
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