Instrument Systems Corporation
| Company type | Public |
|---|---|
| Industry | Conglomerate (building materials, aerospace and defense, garage doors, plastics) |
| Founded | 1959 |
| Founder | Helmuth W. Waldorf |
| Headquarters | New York City , United States |
Area served | Global |
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 materials, aerospace and defense products, garage doors, plastics |
Number of employees | 4700 (2017) |
Griffon Corporation is a global conglomerate based in New York City, functioning as a diversified holding and management enterprise. Its core subsidiaries encompass Ames True Temper, ClosetMaid, Clopay Building Products, and CornellCookson. Griffon has been a publicly traded entity since 1961 and is listed on the New York Stock Exchange, included in the S&P SmallCap 600, S&P Composite 1500, and Russell 2000 indexes.
The leadership team features Chairman and CEO Ronald J. Kramer, President and COO Robert F. Mehmel, Senior Vice President and CFO Brian G. Harris, alongside Senior Vice President and General Counsel Seth Kaplan. As reported for fiscal year 2017, Griffon had a workforce of roughly 4,700 employees.
Griffon’s operations span sectors such as building materials, aerospace and defense, garage door manufacturing, and plastics production. The company’s strategy emphasizes diversified holdings, achieving revenues of US$1.978 billion in fiscal year 2018 with total assets amounting to US$2.085 billion. Although net income decreased to US$14.912 million in fiscal year 2017, Griffon sustains a robust position in the market through its subsidiaries and focused strategic management within its industries.
Formation and initial phase (1959–1964)
In 1959, Helmuth W. Waldorf, a German-born entrepreneur from Long Island with a background as a tool and die maker apprentice, established a defense electronics firm in College Point, Queens. Originally called Waldorf Controls Corporation, it was later renamed Instrument Systems Corporation (ISC). The company went public in 1961 and expanded its avionics segment by acquiring Telephonics Corporation, a well-established aviation electronics firm located on Long Island. Despite facing early financial difficulties, key investors including Waldorf and Lester Avnet of Avnet Electronics brought in Edward J. Garrett, formerly with Loral, to steer the company toward growth.
Leadership under Edward J. Garrett (1964–1982)
Edward J. Garrett assumed the roles of chairman and president at ISC in 1964. He revitalized the company by shutting down unprofitable facilities, expanding into civilian markets alongside government research contracts, and pursuing an aggressive acquisition strategy. In 1966, Garrett appointed his son-in-law Harvey Blau as General Counsel to oversee legal matters. ISC acquired twenty companies in 1968 alone, ranking second nationally for acquisitions during the conglomerate expansion period, and secured listing on the American Stock Exchange that same year.
ISC’s subsidiaries operated throughout the United States and Canada producing a diverse range of products including electronics, specialty trucks, hardware tools, furniture, packaging materials, and construction supplies. Telephonics obtained long-term contracts to provide multiplex passenger entertainment systems for Boeing 747 and Lockheed L-1011 wide-body aircraft models. Under Garrett’s guidance, 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 during this time frame. ISC entered the Fortune 500 list in 1970.
Nonetheless, reductions in defense spending after the Vietnam War coupled with economic difficulties—such as the energy crises of 1973 and 1979 along with subsequent recessions—led to a decline in ISC’s revenues from $233.25 million in 1974 down to $104.3 million by 1982. Garrett passed away that year at age 64.
Harvey R. Blau era (1982–2008)
Following the passing of Edward Garrett in 1982, Harvey R. Blau assumed the roles of chairman and CEO, swiftly advancing divestiture efforts and implementing cost reductions by offloading the company’s window, lighting, and metal casting divisions. A rights offering boosted shareholder equity from $4.6 million to $33.7 million, effectively lowering long-term debt levels. Subsidiaries secured major contracts, such as Telephonics’ involvement with Rockwell International’s B-1B bomber, Lockheed’s S-3A aircraft, Sikorsky’s LAMPS MK III helicopters, and NASA’s Space Shuttle communication systems.
Blau pursued revenue diversification through acquisitions outside the firm’s core industries, notably acquiring the struggling apparel producer Oneita Knitting Mills in 1984 for $14 million. Renamed Oneita Industries, it underwent restructuring and expanded to become the third-largest specialty T-shirt manufacturer in the United States, tripling its sales to $300 million before a partial public offering in 1988 and complete divestiture by 1993.
The 1986 purchase of Clopay Corporation for $37 million stands as ISC’s most successful diversification effort. Founded in 1859 as a paper wholesaler, Clopay evolved into a producer of window coverings, plastic films, and garage doors—emerging by the 1990s as a leading U.S. manufacturer of residential garage doors and a supplier of plastic films for medical applications. By 1991, Clopay accounted for 70% of ISC’s $50 million operating income.
In 1994, Blau orchestrated the company’s transfer from the American Stock Exchange to the New York Stock Exchange and rebranded it as Griffon Corporation to signify a strategic repositioning. Griffon’s revenues surpassed $1 billion by 1999 and reached $1.5 billion in 2006. International growth accelerated through Clopay Plastics’ joint venture Finotech with Germany's Corovin GmbH (60% ownership) in 1996, followed by acquisitions of German firm Bohme Verpackungsfolien GmbH & Co. in 1998 and Brazilian company Isofilme Ltda (initially 60% in 2002), with full acquisition completed by 2005.
In 1997, Telephonics secured its first contract exceeding $100 million—a deal with the British Royal Air Force for Nimrod aircraft communications—but subsequently shifted focus from military reliance toward commercial and government sectors, winning a $26 million contract to supply wireless equipment for the New York City Subway that same year.
Griffon's garage door division expanded concurrently with the U.S. housing boom by incorporating home installation services for residential building products. The acquisition of Holmes-Hally Industries around 1997 for approximately $35 million enhanced West Coast manufacturing and installation capabilities, contributing $80 million in annual sales. By 2006, installation services represented 17% of new U.S. residential housing projects.
The housing market downturn and financial crisis in the 2000s severely affected Griffon’s garage door segment: net sales dropped by 13% in 2007 and another 10.5% in 2008; operating income declined sharply from $41 million in 2006 to a loss of $17 million in 2008. Revenue from installation services fell dramatically from $309 million in 2006 to $109 million in 2008, prompting discontinuation of these services that year. Overall net income fell from a profit of $52 million in 2006 to a loss of $41 million by 2008.
During this challenging phase, shareholder activism intensified—most notably from hedge fund Clinton Group, which held an 8.5% stake as Griffon's second-largest shareholder—advocating for share repurchases and seeking board control in 2007 to enhance stock value amid deteriorating financial results.
Ronald J. Kramer tenure (2008–present)
In 2008, Blau stepped down as CEO, and on April 1 of that year, his son-in-law, Ronald Kramer, assumed the role. Blau continued to serve as non-executive chairman. Kramer, who had been Blau’s son-in-law since 1992, brought experience as an investment banker and had been a Griffon board member since 1993, advancing to vice chairman in 2003. To reinforce Griffon’s financial stability, Kramer arranged a $100 million revolving credit facility with JPMorgan Chase, divested from the shrinking residential installation sector, refinanced senior obligations, and raised approximately $250 million via a stock offering alongside investments from Goldman Sachs, Kramer himself, and existing investors.
Brian Harris joined Griffon in 2009 as chief accounting officer after coming from Dover Corporation and was promoted to CFO by 2015. In 2012, Robert Mehmel was appointed President and COO; he brought valuable expertise from DRS Technologies, a defense electronics firm that experienced significant growth under his leadership before its $5.2 billion acquisition by Finmeccanica.
In response to cuts in U.S. defense spending, Griffon reduced Telephonics’ headcount from 1,400 employees in 2010 to about 1,100 by 2012, restructured its operations, and diversified into homeland security, air traffic control systems, and unmanned aerial vehicles. That same year, Telephonics entered a joint venture with Mahindra & Mahindra to provide radar technology for India’s Ministry of Defense and civilian markets. Additionally, in 2014, Telephonics secured a $23 million contract from the FAA to modernize airport surveillance radar systems.
To broaden its home and building products division, Griffon acquired Ames True Temper in 2010 for $542 million. Established in 1774, Ames specializes in non-powered landscaping tools. Under Kramer’s strategic direction, Griffon expanded Ames through several acquisitions: Southern Patio (pots and planters) for $23 million in 2011; Northcote Pottery (Australian garden décor) for $22 million in 2013; and Cyclone Tools from Illinois Tool Works for $40 million.
Between August 2011 and March 2018, Griffon repurchased approximately 21.9 million shares at a cost of $290 million. Following Blau’s passing in 2018, Kramer took over the role of chairman of the board.
Portfolio restructuring
Starting in 2017, Griffon embarked on a series of strategic deals aimed at enhancing shareholder returns and sharpening business concentration. In that year, Griffon acquired ClosetMaid—a home storage brand—from Emerson for $165 million and subsequently merged it with Ames True Temper in 2018.
In November 2017, Griffon announced it would divest its Clopay Plastics division to Berry Global for $475 million, thereby exiting the specialty plastics market by February 2018. To bolster its Clopay Building Products unit, Griffon purchased CornellCookson—a commercial rolling steel door manufacturer—for $170 million.
On the international front, Griffon expanded its outdoor living segment by acquiring UK-based La Hacienda in 2017 and KelKay in 2018. In Australia during 2017, it added Hills Home Living and gardening supplier Tuscan Path to its portfolio. Within the United States, Griffon enhanced Ames’ product range by acquiring Harper Brush Works—a cleaning products maker—from Horizon Global in October 2017.
These strategic initiatives underscore Griffon’s commitment to focusing on core markets and products while fostering growth through selective acquisitions and portfolio refinement.
Operating Divisions and Subsidiaries
Griffon conducts its business through five fully owned subsidiaries organized into two distinct reportable segments.
Home and Building Products Segment
This division encompasses Ames True Temper, ClosetMaid, Clopay Building Products, and CornellCookson.
Clopay Building Products
Clopay Building Products (CBP) stands as the foremost manufacturer and distributor of residential garage doors in North America, while also ranking as a prominent producer of industrial and commercial doors. CBP operates a nationwide network exceeding 50 distribution centers and supplies approximately 2,000 independent professional dealers alongside leading home center retail chains. Major retail partners include Home Depot and Menards. The company's portfolio features well-known brands such as Clopay, America's Favorite Garage Doors, Holmes Garage Door Company, and IDEAL Door. Headquartered in Ohio, CBP's manufacturing facilities are based within the United States.
CornellCookson
CornellCookson specializes in the production of rolling steel doors, security grilles, and shutters across North America.
Ames True Temper
Acquired by Griffon in 2010 for $542 million, Ames True Temper is a premier supplier of non-powered lawn and garden tools. Its extensive product range includes long-handled tools, wheelbarrows, planters, pruning equipment, garden hoses, among others. Established in 1774 by Captain John Ames, the company holds a distinguished heritage as one of America's longest-operating manufacturers. Its brand lineup—comprising Ames, True Temper, Union Tools, Garant, Cyclone, and additional names—caters to major retailers such as Home Depot, Lowe's, Walmart, Costco, and Bunnings.
Ames maintains manufacturing operations across the U.S. and Canada with significant activities also in Australia and the United Kingdom. Headquartered in Pennsylvania, it was historically recognized for its Harrisburg facility—the world’s largest wheelbarrow factory until its closure in 2023. The product assortment extends to hand tools, garden hoses marketed under NeverLeak and Nylex brands, as well as landscaping products under Southern Patio and Northcote Pottery.
Telephonics Corporation
Griffon held ownership of Telephonics from 1961 until divesting it in 2022. Founded in 1933, Telephonics is known for its expertise in intelligence, surveillance, and communications systems. In June 2022, Griffon completed the sale of Telephonics to TTM Technologies—a manufacturer specializing in printed circuit boards, backplane assemblies, and RF modules—for $330 million in cash. This transaction bolstered TTM’s position within the defense electronics sector.