Jul 4 2005
Griffon Corporation announced that yesterday, Clopay Plastics Products Company, its specialty plastic films operation, entered into a definitive agreement to purchase the outstanding 40% minority share of Finotech GmbH & Co. KG (Finotech) from its joint venture partner, BBA Group PLC, in an $82 million cash transaction. Established in 1996, Finotech is a leading developer and manufacturer of sophisticated films, laminates and printing solutions for global consumer products companies and others, primarily in the infant diaper and other hygienic markets.
Gary Abyad, President of the Clopay Plastics Products Company stated that the move to 100% ownership increases financial and operational flexibility and will enable Clopay to streamline its German operations and strengthen its core film business, creating a firm base for anticipated growth in European operations.
It is expected that the transaction will be completed next week and that the purchase will be funded with cash on-hand and financing obtained through the existing revolving credit facility. The purchase transaction is expected to be accretive to earnings.