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8-K - FORM 8-K - Ames True Temper, Inc. | y03737e8vk.htm |
EX-99.1 - EX-99.1 - Ames True Temper, Inc. | y03737exv99w1.htm |
EX-10.1 - EX-10.1 - Ames True Temper, Inc. | y03737exv10w1.htm |
Exhibit 99.2
Castle Harlan Sells Ames True Temper,
Leading Maker of Lawn and Garden Tools, for $542M to Griffon Corp.
Leading Maker of Lawn and Garden Tools, for $542M to Griffon Corp.
NEW YORK, July 19, 2010 Castle Harlan, Inc., the New York private equity firm, announced today
that Castle Harlan Partners IV has agreed to sell Ames True Temper, Inc. (Ames True Temper or the
Company), the leading North American manufacturer and global marketer of non-powered lawn and
garden tools and accessories, to Griffon Corp. for $542 million.
Griffon Corp. is a diversified management and holding company based in New York. Its businesses
include Telephonics Corp., which produces information, communication and sensor systems; Clopay
Building Products Co., maker of commercial and residential garage doors; and Clopay Plastic
Products Co., producer of specialty plastic films for hygienic, healthcare and industrial
applications.
Ames True Temper, in business since 1774, is the market leader in North America for certain lawn
and garden products, such as long-handled tools, including rakes and shovels, as well as
wheelbarrows, snow tools, striking tools and pots and planters. The Company is based in Camp Hill,
Penn., and its customers include national retailers such as The Home Depot, Lowes and Walmart, as
well as major hardware chains and similar stores throughout North America.
Castle Harlan President Justin Wender said, Weve had a successful partnership with Ames True
Temper since we acquired the company in 2004. With an exceptionally strong and experienced
management team in place, the company is poised to continue its solid growth, and were proud to
have been a part of its storied history.
Ames True Temper President and CEO Duane Greenly said, It has been a pleasure to partner with
Castle Harlan. With its guidance and support, weve made tremendous strides, and we will continue
to provide our customers and the market in general, a focus on quality, service and value.
Ron Kramer, Griffons Chief Executive Officer commented, Ames True Temper is the clear
market leader in the outdoor work category, with superb brands, quality products, excellent
customer relationships, and an outstanding management team. There are immediate growth
opportunities for this business both in North America and around the world. Ames True Temper will
provide significant initial value to our shareholders, as well as enhance our ability to grow for
the long-term.
Under the definitive agreement, the buyer is expected to effect a tender offer for and/or
substantially concurrent with the closing of the acquisition cause the Company to effect a
redemption offer and a covenant defeasance of both the Senior Floating Rate Notes due 2012 and the
10% Senior Subordinated Notes due 2012, in each case issued by Ames True Temper, in accordance with
the
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indentures governing each series of Notes. Completion of the acquisition is conditioned on the
satisfaction of customary closing conditions and is expected to be finalized later this quarter.
Credit Suisse and UBS acted as financial advisors to Ames True Temper in this transaction. In
addition, Robert W. Baird & Co. acted as an advisor to Ames True Temper management and Castle
Harlan.
Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of
middle-market companies in North America and Europe. Its team of 19 investment professionals has
completed 51 acquisitions since its inception with a total value in excess of $9.6 billion. Castle
Harlan currently manages investment funds with equity commitments of $2.5 billion. The firm traces
its roots to the start of the institutionalized private-equity business in the late 1960s.
Castle Harlans current portfolio of companies, which employ more than 37,500 people, includes
Baker & Taylor, the worlds largest distributor of books and entertainment products to libraries
and retailers; Pretium Packaging LLC, one of the countrys leading manufacturers of custom-designed
specialty plastic containers for the food, pharmaceutical, personal-care and household markets; and
IDQ Holdings, Inc., the industry leader in Do-it-Yourself, branded products for servicing and
repairing automotive air conditioners.
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