Onex and Griffon Form Joint Venture
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy GFF?
Oncap, the lower mid-market private equity platform of Onex (ONEXF), and Griffon Corporation (GFF) announced they have entered into a definitive agreement to form a joint venture creating a provider of hand tools, home organization solutions, and lawn and garden products for professionals and consumers. The joint venture will combine Bellota Tools, Corona, and Burgon & Ball, which are currently subsidiaries of the Venanpri Group, Oncap's majority-owned portfolio company, and Griffon's AMES Companies businesses in North America, which are currently part of Griffon's Consumer and Professional Products segment. The joint venture will be managed as a subsidiary of Venanpri, which, together with other affiliates of Oncap, will hold a 57% equity interest. Griffon will participate in the governance and oversight of the joint venture as a 43% equity holder. Venanpri's Agrisolutions business, including the Bellota Agrisolutions and Ingersoll brands, are not part of this joint venture and will continue to be wholly owned by Venanpri.
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Analyst Views on GFF
Wall Street analysts forecast GFF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GFF is 92.00 USD with a low forecast of 92.00 USD and a high forecast of 92.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 89.570
Low
92.00
Averages
92.00
High
92.00
Current: 89.570
Low
92.00
Averages
92.00
High
92.00
About GFF
Griffon Corporation is a diversified management and holding company that conducts business through wholly owned subsidiaries. The Company’s segments include Home and Building Products (HBP) and Consumer and Professional Products (CPP). The HBP segment conducts its operations through Clopay Corporation (Clopay). Clopay is the manufacturer and marketer of garage doors and rolling steel doors in North America. Residential and commercial sectional garage doors are sold through professional dealers and home center retail chains throughout North America under the brands Clopay, Ideal, and Holmes. The CPP segment is a global provider of branded consumer and professional tools; residential, industrial and commercial fans; home storage and organization products; and products that enhance indoor and outdoor lifestyles. CPP sells products globally through a portfolio of brands, including AMES, Hunter, True Temper, and ClosetMaid.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Griffon Corporation Q1 2026 Earnings Call Highlights
- Strong Financial Performance: Griffon Corporation reported Q1 revenue of $649 million, a 3% increase year-over-year, with adjusted EBITDA of $145 million, reflecting solid performance in Home and Building Products despite challenges from weak consumer demand in the U.S.
- Accelerated Strategic Transformation: The company announced a joint venture with AMES North America and Venanpri Tools aimed at creating a global leader in professional and consumer tools, while integrating Hunter Fan with Home and Building Products to strengthen market positioning.
- Continued Shareholder Returns: Griffon repurchased $18 million of stock in Q1, reducing outstanding shares by 19.3%, and declared a quarterly dividend of $0.22 per share, marking the 58th consecutive dividend payment, demonstrating a strong commitment to shareholder returns.
- Optimistic Future Outlook: Management expects fiscal 2026 revenue to reach $1.8 billion and adjusted EBITDA of $520 million, maintaining confidence in growth potential despite macroeconomic challenges, particularly with a recovery anticipated in the housing market.
See More
Griffon Declares Quarterly Dividend of $0.22 per Share
- Quarterly Dividend Announcement: Griffon Corporation has declared a quarterly dividend of $0.22 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy.
- Dividend Yield: The forward yield of 1.04% reflects the company's attractiveness in the current market environment, potentially drawing in more income-focused investors.
- Payment Schedule: The dividend is payable on March 18, with a record date of February 27 and an ex-dividend date also on February 27, ensuring shareholders receive timely returns.
- Future Financial Targets: Griffon has outlined revenue targets of $2.5 billion and EBITDA of $580 million to $600 million for 2026, indicating the company's commitment to enhancing capital returns while pursuing sustainable growth.
See More
Griffon Declares Quarterly Dividend of $0.22 per Share
- Quarterly Dividend Announcement: Griffon has declared a quarterly dividend of $0.22 per share, consistent with previous distributions, indicating the company's stable cash flow and commitment to shareholder returns.
- Dividend Yield: The forward yield of 1.04% reflects the company's attractiveness in the current market environment, potentially drawing in more income-focused investors.
- Shareholder Record Date: The dividend will be payable on March 18, with a record date of February 27 and an ex-dividend date also on February 27, ensuring shareholders receive their returns promptly.
- Future Financial Targets: Griffon has outlined ambitious targets of $2.5 billion in revenue and $580 million to $600 million in EBITDA for 2026, demonstrating the company's focus on enhancing capital returns while pursuing sustainable growth.
See More
Griffon Releases Fiscal 2026 Earnings Outlook
- Earnings Beat: Griffon's Q1 Non-GAAP EPS of $1.45 exceeded expectations by $0.12, with revenue of $649.1 million reflecting a 2.6% year-over-year increase, surpassing market expectations by $29.72 million, indicating robust performance in the market.
- Fiscal 2026 Outlook: The company anticipates fiscal 2026 revenue from continuing operations to be $1.8 billion, below the consensus of $2.53 billion, with adjusted EBITDA projected at $520 million, excluding unallocated costs of $62 million, reflecting a cautious outlook on future revenues.
- Cash Flow Expectations: Free cash flow from continuing operations is expected to exceed net income, despite capital expenditures of $50 million and depreciation and amortization of $27 million and $15 million respectively, indicating a balance between investment and returns.
- Interest Expense and Tax Rate: Fiscal year 2026 interest expense is projected at $93 million, with Griffon's normalized tax rate expected to be 28%, factors that will influence the company's overall profitability and cash flow management.
See More
Griffon Corporation Reports Q1 2026 Financial Results
- Revenue Growth: Griffon Corporation reported Q1 2026 revenue of $649.1 million, a 3% increase from $632.4 million in the prior year, indicating stable performance despite rising cost pressures.
- Net Income Decline: The company posted net income of $64.4 million, or $1.41 per share, down from $70.9 million and $1.49 per share in the previous year, reflecting the impact of cost pressures on profitability.
- Strong Free Cash Flow: Free cash flow for the quarter was $99 million, demonstrating the company's robust ability to invest and repay debt, thereby enhancing financial flexibility for future growth.
- Strategic Partnership: Griffon announced a joint venture with ONCAP to consolidate its AMES businesses in the U.S. and Canada, which is expected to optimize resource allocation and enhance market competitiveness.
See More
ONCAP and Griffon Form Joint Venture for Tools and Home Solutions
- Joint Venture Formation: ONCAP and Griffon have entered into a definitive agreement to create a joint venture that integrates brands like Bellota Tools, Corona, and Burgon & Ball, establishing a leading global provider of hand tools and home organization solutions, which is expected to significantly enhance market competitiveness.
- Market Coverage Expansion: The new joint venture will serve markets in North America, South America, and Europe, leveraging the strengths of Venanpri and AMES to reduce operational costs through economies of scale, thereby improving overall profitability.
- Clear Equity Structure: The joint venture will be owned 57% by Venanpri and 43% by Griffon, ensuring effective collaboration in governance and operations, which will drive synergistic business development.
- Positive Future Outlook: The joint venture is expected to close by the end of June 2026, with both parties planning to utilize their brand strengths and market expertise to expand product lines and enhance customer service quality to meet the growing market demand.
See More
Griffon Corporation Q1 2026 Earnings Call Highlights
- Strong Financial Performance: Griffon Corporation reported Q1 revenue of $649 million, a 3% increase year-over-year, with adjusted EBITDA of $145 million, reflecting solid performance in Home and Building Products despite challenges from weak consumer demand in the U.S.
- Accelerated Strategic Transformation: The company announced a joint venture with AMES North America and Venanpri Tools aimed at creating a global leader in professional and consumer tools, while integrating Hunter Fan with Home and Building Products to strengthen market positioning.
- Continued Shareholder Returns: Griffon repurchased $18 million of stock in Q1, reducing outstanding shares by 19.3%, and declared a quarterly dividend of $0.22 per share, marking the 58th consecutive dividend payment, demonstrating a strong commitment to shareholder returns.
- Optimistic Future Outlook: Management expects fiscal 2026 revenue to reach $1.8 billion and adjusted EBITDA of $520 million, maintaining confidence in growth potential despite macroeconomic challenges, particularly with a recovery anticipated in the housing market.
See More
Griffon Declares Quarterly Dividend of $0.22 per Share
- Quarterly Dividend Announcement: Griffon Corporation has declared a quarterly dividend of $0.22 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy.
- Dividend Yield: The forward yield of 1.04% reflects the company's attractiveness in the current market environment, potentially drawing in more income-focused investors.
- Payment Schedule: The dividend is payable on March 18, with a record date of February 27 and an ex-dividend date also on February 27, ensuring shareholders receive timely returns.
- Future Financial Targets: Griffon has outlined revenue targets of $2.5 billion and EBITDA of $580 million to $600 million for 2026, indicating the company's commitment to enhancing capital returns while pursuing sustainable growth.
See More
Griffon Declares Quarterly Dividend of $0.22 per Share
- Quarterly Dividend Announcement: Griffon has declared a quarterly dividend of $0.22 per share, consistent with previous distributions, indicating the company's stable cash flow and commitment to shareholder returns.
- Dividend Yield: The forward yield of 1.04% reflects the company's attractiveness in the current market environment, potentially drawing in more income-focused investors.
- Shareholder Record Date: The dividend will be payable on March 18, with a record date of February 27 and an ex-dividend date also on February 27, ensuring shareholders receive their returns promptly.
- Future Financial Targets: Griffon has outlined ambitious targets of $2.5 billion in revenue and $580 million to $600 million in EBITDA for 2026, demonstrating the company's focus on enhancing capital returns while pursuing sustainable growth.
See More
Griffon Releases Fiscal 2026 Earnings Outlook
- Earnings Beat: Griffon's Q1 Non-GAAP EPS of $1.45 exceeded expectations by $0.12, with revenue of $649.1 million reflecting a 2.6% year-over-year increase, surpassing market expectations by $29.72 million, indicating robust performance in the market.
- Fiscal 2026 Outlook: The company anticipates fiscal 2026 revenue from continuing operations to be $1.8 billion, below the consensus of $2.53 billion, with adjusted EBITDA projected at $520 million, excluding unallocated costs of $62 million, reflecting a cautious outlook on future revenues.
- Cash Flow Expectations: Free cash flow from continuing operations is expected to exceed net income, despite capital expenditures of $50 million and depreciation and amortization of $27 million and $15 million respectively, indicating a balance between investment and returns.
- Interest Expense and Tax Rate: Fiscal year 2026 interest expense is projected at $93 million, with Griffon's normalized tax rate expected to be 28%, factors that will influence the company's overall profitability and cash flow management.
See More
Griffon Corporation Reports Q1 2026 Financial Results
- Revenue Growth: Griffon Corporation reported Q1 2026 revenue of $649.1 million, a 3% increase from $632.4 million in the prior year, indicating stable performance despite rising cost pressures.
- Net Income Decline: The company posted net income of $64.4 million, or $1.41 per share, down from $70.9 million and $1.49 per share in the previous year, reflecting the impact of cost pressures on profitability.
- Strong Free Cash Flow: Free cash flow for the quarter was $99 million, demonstrating the company's robust ability to invest and repay debt, thereby enhancing financial flexibility for future growth.
- Strategic Partnership: Griffon announced a joint venture with ONCAP to consolidate its AMES businesses in the U.S. and Canada, which is expected to optimize resource allocation and enhance market competitiveness.
See More
ONCAP and Griffon Form Joint Venture for Tools and Home Solutions
- Joint Venture Formation: ONCAP and Griffon have entered into a definitive agreement to create a joint venture that integrates brands like Bellota Tools, Corona, and Burgon & Ball, establishing a leading global provider of hand tools and home organization solutions, which is expected to significantly enhance market competitiveness.
- Market Coverage Expansion: The new joint venture will serve markets in North America, South America, and Europe, leveraging the strengths of Venanpri and AMES to reduce operational costs through economies of scale, thereby improving overall profitability.
- Clear Equity Structure: The joint venture will be owned 57% by Venanpri and 43% by Griffon, ensuring effective collaboration in governance and operations, which will drive synergistic business development.
- Positive Future Outlook: The joint venture is expected to close by the end of June 2026, with both parties planning to utilize their brand strengths and market expertise to expand product lines and enhance customer service quality to meet the growing market demand.
See More
