Griffon completes joint venture with ONCAP combining AMES and Venanpri Tools

Griffon Corporation (NYSE: GFF) announced the completion of its joint venture with ONCAP, combining Griffon's AMES Companies United States and Canada businesses with Venanpri Tools. The transaction creates Veritage Brands, a provider of hand tools, home organization solutions, and lawn and garden products.

Under the agreement, Griffon received $100 million in cash and $161 million in second lien debt from Veritage Brands for the sale of AMES U.S. and Canada operations. Griffon retains a 43% equity interest in the joint venture, while ONCAP and its affiliates hold 57%.

ONCAP is a subsidiary of Onex Corporation (TSX: ONEX) and will manage Veritage Brands as a portfolio company. Venanpri Tools is a global tool provider majority owned by ONCAP.

"Today's closing represents a significant step forward for Veritage Brands and Griffon alike," said Ronald J. Kramer, Chairman and CEO of Griffon. "The completion of this transaction also further advances Griffon's strategic evolution into a pure-play building products company."

Griffon manufactures residential garage doors and commercial sectional doors, rolling steel doors, and grille products. The company also produces residential and commercial ceiling fans. Following the transaction, Griffon will focus on its building products operations.

Goldman Sachs & Co. LLC served as financial advisor and Dechert LLP as legal counsel to Griffon. Canaccord Genuity LLC acted as financial advisor and Torys LLP as legal counsel to ONCAP and Venanpri.

The information is based on a press release statement from Griffon Corporation.

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