Griffon Corporation (NYSE: GFF) announced it has entered into an agreement to sell its AMES Australasia business to a joint venture it is forming with an investment group led by the management of AMES Australasia.

Under the terms of the agreement, Griffon will receive $185 million at closing and $50 million in a subordinated note in the joint venture. Griffon will retain a 49% equity interest in the joint venture, while the remaining 51% ownership will be held by an investment group led by Simon Hupfeld, who will become Executive Chairman of the business upon closing.

The joint venture will be financed through committed debt financing, equity from the joint venture partners, and the Griffon subordinated note. The transaction is subject to customary closing conditions and is expected to be completed by Griffon's fiscal year ending in September 2026.

"This joint venture will best position AMES Australasia to serve its valued customers while generating both immediate and longer-term value for Griffon shareholders," said Ronald J. Kramer, Chairman and CEO of Griffon.

Hupfeld stated, "This joint venture gives us the platform to accelerate the growth of the business while continuing to benefit from our strong partnership with Griffon."

Goldman Sachs & Co. LLC acted as financial advisor to Griffon and provided committed debt financing for the joint venture. Houlihan Lokey Capital, Inc. served as financial advisor to Griffon's Board. Clayton Utz acted as legal counsel to Griffon, while Ashurst Australia represented the investment group.

Griffon Corporation is a provider of residential and commercial building products, including garage doors and ceiling fans. The company's AMES businesses are classified as discontinued operations, according to the press release.