Griffon announced plans to raise up to USD 197.80 million through an underwritten public offering.
The New York-listed diversified management and holding company is offering 8.00 million shares of common stock at a price of USD 21.50 apiece.
Griffon has also granted underwriters a 30-day option to purchase up to an additional 1.20 million scrips.
Baird is lead bookrunner for the offering, with help from Raymond James & Associates, Stephens and Truist Securities.
CJS Securities and Sidoti & Company are acting as co-managers for the sale.
Griffon plans to use the proceeds from the disposal for working capital and general corporate purposes.
This includes expanding its current business through acquisitions of, or investments in, other businesses or products and to temporarily repay a portion of its outstanding borrowings under its revolving credit facility.
The offering is expected to complete on 18th August 2020, subject to the satisfaction of customary closing conditions.
Founded in 1959, Griffon conducts business through wholly-owned subsidiaries and overseas the operations of these companies, allocating resources among them and managing their capital structures.
It provides direction and assistance to its companies in connection with acquisition and growth opportunities, as well as in connection with divestitures.
Shares in Griffon closed down 1.1 per cent to USD 21.92 at 06:51 in premarket trading today, giving the business a market capitalisation of USD 1.04 billion.
The company runs three segments including consumer and professional products, home and building and defence electronics.
Business support services providers have featured in 16 capital increases announced worldwide in 2020 to date, according to Zephyr, the M&A database published by Bureau van Dijk.
In the largest of these, Network International Holdings completed an accelerated bookbuild placing to raise GBP 205.00 million in proceeds.
Other targets included Credit Corp Group, Calian Group, Serco Group and Amaze Entertech.
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