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EQUITY METHOD INVESTMENT
9 Months Ended
Jun. 30, 2026
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY METHOD INVESTMENT EQUITY METHOD INVESTMENT
On February 5, 2026, Griffon announced it entered into a definitive agreement to form a joint venture with ONCAP, the mid-market private equity platform of Onex Corporation (TSX:ONEX), to create a leading global provider of hand tools, home organization solutions, and lawn and garden products for professionals and consumers. The joint venture combines the AMES North America businesses of Griffon’s AMES Companies (“AMES”) with the Bellota Tools, Corona, and Burgon & Ball businesses of Venanpri, an ONCAP majority-owned portfolio company. The joint venture is managed as a subsidiary of Venanpri which, together with other affiliates of ONCAP, holds a 57% equity interest.

On June 9, 2026, Griffon completed the sale of AMES North America business to Veritage and received $100,000 in cash, a $161,100 second-lien PIK debt receivable, and a 43% equity interest with an initial carrying value of $118,600. Griffon's investment in Veritage is accounted for under the equity method. The Company recognizes its proportionate share of the investee’s earnings or losses in the Condensed Consolidated Statements of Operations. Results from non-strategic investments are recorded in equity interest in earnings (losses) of unconsolidated joint ventures. The Company records its proportionate share of its investee’s earnings or losses on a three-month lag. As such, the Company did not record its proportionate share of the joint venture's earnings or loss during the three and nine months ended June 30, 2026.

As of June 30, 2026, the Company recorded its initial investment of $118,600 within Equity Method Investments, and its second-lien PIK debt receivable of $161,100 within Notes Receivable (related party) on the Condensed Consolidated Balance Sheets. Veritage is in the process of attributing the difference between its enterprise value and the carrying value of assets and liabilities at the date of formation to identifiable assets and liabilities, with any residual to be recorded as goodwill. Any basis differences will be amortized over the estimated useful lives of the identified assets. The Company expects Veritage to complete this process by September 30, 2026.

In connection with the sale of AMES North America and the Company's equity method investment in Veritage, we provided seller financing consisting of two second lien secured term loan facilities with an aggregate principal amount of $161,100 at a fixed annual rate of 10% PIK interest, which capitalizes quarterly. The second-lien PIK debt receivable matures on December 9, 2029. The outstanding balance of the PIK debt receivable was $162,039 as of June 30, 2026. Griffon recognized PIK interest income of $939 during the three and nine months ended June 30, 2026.

As of June 30, 2026, included in Prepaid and other current assets on the Condensed Consolidated Balance Sheets is a receivable of $7,998 due from Veritage for transaction costs paid at closing in connection with the formation of the joint venture.