ST. LOUIS--(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.
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.
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.