US conglomerate Griffon Corporation has launched a review of “strategic alternatives” for its Telephonics subsidiary, including whether to divest the defence electronics business.
“Griffon is evaluating strategic alternatives for Telephonics to increase long-term value for our shareholders, while creating enhanced growth opportunities for Telephonics,” Griffon chairman and CEO Ronald Kramer said on 27 September.
Griffon has hired financial advisory firm Lazard, and law firm Dechert LLP to help with the evaluation.
Griffon did not say what prompted the review or how long it would take. However, Griffon sold defence engineering firm Systems Engineering Group to QuantiTech, now named Axient, for USD15 million in December, saying it wanted to focus on other business areas.
Telephonics accounts for about 12% or USD300 million of Griffon's USD2.6 billion in annual revenue. Two non-defence segments – Consumer and Professional Products, and Home and Building Products –account for the other 88%.
Founded in 1933 and based in Farmingdale, New York, Telephonics makes communications and surveillance equipment for customers that include the US military and allied forces, as well as Airbus, Boeing, Lockheed Martin, and Northrop Grumman.
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