Griffon Corporation
| Company type | Public |
|---|---|
| Industry | Building products, aerospace and defense, garage door manufacturing, plastics |
| Founded | 1959 |
| Headquarters | New York City , United States |
Area served | Worldwide |
Key people | Ronald J. Kramer (Chairman and CEO), Robert F. Mehmel (President and COO), Brian G. Harris (Senior VP and CFO), Seth Kaplan (Senior VP and General Counsel) |
| Products | Building products, aerospace and defense products, garage doors, plastics |
Number of employees | Approximately 1,100 (Telephonics workforce in 2012) |
| Website | griffon |
Griffon Corporation is a global conglomerate based in New York City, functioning as a diversified holding and management enterprise. Its operations encompass five primary subsidiaries: Ames True Temper, ClosetMaid, Clopay Building Products, and CornellCookson. Established in 1959 and publicly listed in 1961, Griffon’s shares trade on the New York Stock Exchange under the symbol GFF. The company is also a constituent of the S&P 600, S&P 1500, and Russell 2000 indexes.
The firm's core industries include building products, aerospace and defense, garage door manufacturing, and plastics. In fiscal year 2018, Griffon reported revenues of US$1.978 billion and held assets totaling US$2.085 billion. The executive leadership team features Chairman and CEO Ronald J. Kramer, President and COO Robert F. Mehmel, alongside Senior Vice Presidents Brian G. Harris (Chief Financial Officer) and Seth Kaplan (General Counsel). Griffon’s strategic direction prioritizes growth in market share through its diversified holdings and international presence, capitalizing on its competitive strengths across multiple sectors.
Founding and early development (1959–1964)
The origins of Griffon trace back to 1959 when Helmuth W. Waldorf, a German immigrant and Columbia University alumnus from Long Island, launched a defense electronics firm in College Point, Queens. Initially named Waldorf Controls Corporation, the company was later rebranded as Instrument Systems Corporation (ISC). Going public in 1961, ISC broadened its avionics portfolio by acquiring Telephonics Corporation—an aviation electronics innovator founded in 1933. Early financial difficulties prompted key investors including Waldorf and Lester Avnet of Avnet Electronics Corporation to bring in Edward J. Garrett, formerly of Loral Corporation, to revitalize the company.
Edward J. Garrett leadership period (1964–1982)
In 1964, Edward Garrett assumed the roles of chairman and president at ISC. His approach involved shutting down unprofitable facilities, expanding into civilian markets alongside existing government contracts, and pursuing an aggressive acquisition strategy spanning defense, commercial electronics, and manufacturing industries. By 1966, Garrett appointed his son-in-law Harvey Blau as General Counsel to manage legal matters amid this growth phase. The company acquired twenty firms in 1968 alone, ranking second nationally for acquisitions that year while listing its stock on the American Stock Exchange.
ISC’s subsidiaries operated manufacturing sites throughout the United States and Canada producing electronic equipment, specialty vehicles, hardware tools, furniture, packaging solutions, and building materials. Telephonics secured long-term contracts to provide multiplex passenger entertainment systems for Boeing 747 and Lockheed L-1011 aircraft models, strengthening ISC’s position within aerospace electronics.
During Garrett’s tenure, net sales increased dramatically from $5.7 million in 1964 to $165.2 million by 1970; total assets expanded from $4.1 million to $120.4 million over the same period. ISC earned a spot on the Fortune 500 list in 1970. Nonetheless, reductions in defense budgets following the Vietnam War coupled with economic challenges—including the energy crises of 1973 and 1979 and ensuing recessions—resulted in revenue dropping from $233.25 million in 1974 to $104.3 million by 1982. Garrett died at age 64 in 1982.
Harvey R. Blau era (1982–2008)
Following Edward Garrett's passing in 1982, Harvey R. Blau assumed the roles of chairman and CEO, intensifying efforts to streamline operations by divesting window, lighting, and metal casting divisions. The company strengthened its financial position through a rights offering that increased shareholder equity from $4.6 million to $33.7 million while simultaneously lowering long-term liabilities. Key subsidiaries secured major contracts, notably Telephonics’ involvement with Rockwell International’s B-1B bomber and communication systems for NASA’s Space Shuttle.
Blau expanded ISC’s revenue streams by acquiring firms beyond its traditional sectors. In 1984, ISC acquired the struggling apparel maker Oneita Knitting Mills for $14 million, rebranding it as Oneita Industries and subsequently tripling its sales to $300 million. Oneita went public in 1988, with ISC fully divesting by 1993.
The purchase of Clopay Corporation in 1986 for $37 million represented ISC’s most effective diversification move. Initially a paper wholesaler, Clopay broadened into plastic films and garage doors, emerging as a top U.S. manufacturer of residential garage doors and a supplier of plastic films used in medical products. By 1991, Clopay accounted for 70% of ISC's $50 million operating income.
In 1994, Blau orchestrated the transition of the company’s stock listing from the American Stock Exchange to the New York Stock Exchange and rebranded the enterprise as Griffon Corporation to better represent its evolving business focus.
Griffon’s revenues exceeded $1 billion by 1999 and reached $1.5 billion in 2006. Clopay Plastics expanded internationally through joint ventures and acquisitions in Germany and Brazil from 1996 to 2005. Telephonics achieved its first contract over $100 million in 1997 with the British Royal Air Force while also branching into commercial wireless communications.
Capitalizing on the U.S. housing boom, the garage door division introduced home installation services and acquired Holmes-Hally Industries for approximately $35 million in 1997, boosting its presence on the West Coast. By 2006, Griffon's installation services accounted for 17% of new residential construction in the U.S.
However, the housing market downturn and financial crisis of the 2000s severely impacted performance: garage door sales declined more than 20% between 2006 and 2008 with operating profits turning negative; installation services revenue plunged from $309 million in 2006 to $109 million in 2008, leading to the discontinuation of this segment. Griffon's net income dropped from $52 million in 2006 to a loss of $41 million by 2008.
During this challenging period, shareholder activism increased. In 2007, hedge fund Clinton Group, holding an 8.5% stake as Griffon's second-largest shareholder, pushed for share repurchases and sought majority control of the board to improve market valuation.
Ronald J. Kramer era (2008–present)
Harvey Blau stepped down as CEO in 2008, passing leadership to his son-in-law, Ronald Kramer, who had served on Griffon's board since 1993 and as vice chairman since 2003. Blau retained his position as non-executive chairman. Kramer, an investment banker connected to Blau through marriage since 1992, prioritized fortifying Griffon’s financial foundation by securing a $100 million revolving credit facility from JPMorgan Chase, exiting the declining residential installation segment, refinancing senior debt obligations, and raising approximately $250 million via a stock offering alongside investments from Goldman Sachs, Kramer himself, and existing shareholders.
In 2009, Griffon appointed Brian Harris from Dover Corporation as CFO; Harris advanced within Griffon to senior vice president by 2015. Robert Mehmel joined as President and COO in 2012 bringing substantial expertise from DRS Technologies—a defense electronics company acquired for $5.2 billion by Italy’s Finmeccanica in 2008.
Facing reductions in U.S. defense spending, Griffon downsized Telephonics’ workforce from about 1,400 employees in 2010 to roughly 1,100 by 2012 while restructuring operations and expanding into homeland security technologies, air traffic management solutions, and unmanned aerial vehicle systems. In addition, Telephonics established a joint venture with Mahindra & Mahindra in 2012 to provide radar systems to India’s Ministry of Defense and secured a $23 million FAA contract in 2014 aimed at upgrading airport surveillance radar infrastructure.
To diversify its home and building products portfolio, Griffon acquired Ames True Temper in 2010 for $542 million. Founded in 1774, Ames specializes in landscaping tools. Under Kramer’s guidance, Ames expanded through acquisitions including Southern Patio pots and planters for $23 million in 2011; Northcote Pottery—an Australian garden decor manufacturer—for $22 million in 2013; and Cyclone Tools from Illinois Tool Works for $40 million.
From August 2011 through March 2018, Griffon repurchased approximately 21.9 million shares of common stock at a total cost of $290 million. Following Blau’s death in January 2018, Kramer succeeded him as chairman of the board later that year.
Portfolio restructuring
Starting in 2017, Griffon engaged in targeted transactions aimed at boosting shareholder returns and concentrating its portfolio on primary business areas. That year, Griffon purchased the ClosetMaid home storage division from Emerson for $165 million, subsequently merging it with Ames True Temper in March 2018.
In November 2017, Griffon revealed plans to divest its Clopay Plastics unit to Berry Global for $475 million. This deal was finalized in February 2018, marking Griffon's exit from the specialty plastics market it had entered in 1986.
To reinforce its Clopay Building Products subsidiary, Griffon acquired CornellCookson—specializing in commercial rolling steel and fire doors—for $170 million, thereby broadening its product offerings.
On the international front, Griffon expanded its outdoor living segment by acquiring UK-based La Hacienda in 2017 and decorative landscaping firm KelKay in 2018. In Australia, acquisitions included Hills Home Living and gardening supplier Tuscan Path during 2017.
Within the United States, Griffon enhanced the Ames product portfolio by purchasing cleaning products manufacturer Harper Brush Works from Horizon Global in October 2017.
Operating divisions and subsidiaries
Griffon's operations are conducted through five fully owned subsidiaries grouped into two reportable segments.
Home and Building Products Segment
This division comprises Ames True Temper, ClosetMaid, Clopay Building Products, and CornellCookson.
Clopay Building Products
Clopay Building Products (CBP) stands as North America's largest producer and distributor of residential garage doors and is a prominent manufacturer of industrial and commercial doors. It maintains a network of over 50 distribution centers across the country, servicing approximately 2,000 independent professional installers along with major home center retailers such as Home Depot and Menards. CBP's portfolio includes brands like Clopay, America's Favorite Garage Doors, Holmes Garage Door Company, and IDEAL Door. Established through acquisitions beginning in 1964, CBP continues to operate manufacturing facilities within the United States, with headquarters located in Ohio.
CornellCookson
CornellCookson produces rolling steel doors, shutters, and security grilles throughout North America.
Ames True Temper
Acquired for $542 million in 2010, Ames True Temper is a leading manufacturer of non-powered lawn and garden tools including long-handle tools, wheelbarrows, planters, snow tools, striking tools, pruning tools, garden hoses, and clotheslines. Founded by Captain John Ames in 1774, it ranks among the oldest continuously operating companies in the U.S. The company manufactures hand and long-handle tools under various brands such as Ames, True Temper, Union Tools, Garant, Cyclone, Kelso, Razor-Back, Jackson, Trojan Cyclone, Supercraft, and Westmix. Garden hoses and storage items are marketed under Ames, NeverLeak, Nylex, Jackson, and Hills brands; landscaping accessories are sold under Southern Patio, Northcote Pottery, KelKay, and Dynamic Design.
Ames serves major retail customers including Home Depot, Lowe's, Walmart, Costco, and Bunnings. Manufacturing facilities operate in the U.S. and Canada with key operations also based in Australia and the United Kingdom. The company's headquarters are located in Pennsylvania; it maintained a significant manufacturing presence in Harrisburg until the wheelbarrow plant closure in 2023.
Telephonics Corporation
Telephonics, established in 1933, focuses on intelligence, surveillance, and communications systems. Griffon held ownership of the company from 1961 until it divested Telephonics in 2022. In June of that year, Griffon transferred ownership to TTM Technologies, a producer of printed circuit boards, backplane assemblies, and RF modules, in a transaction valued at $330 million in cash. This acquisition broadened TTM's product offerings and strengthened its presence within the defense electronics sector.