BLOOMINGTON, Minn. - The Toro Company (NYSE:TTC), a leading provider of outdoor environment solutions, has divested its Pope Products business to The AMES Company, Inc., part of Griffon Corporation (NYSE:NYSE:GFF). Pope Products, which operates under Toro Australia Pty Ltd and Toro Australia Group Sales Pty Ltd, is known for its residential garden watering and irrigation products in Australia and New Zealand.
The sale, announced today, is a strategic move by The Toro Company to streamline its portfolio and concentrate on areas with the most potential for profitable growth. The decision aligns with the company's disciplined approach to portfolio management and capital allocation strategies. Toro Australia will now focus more on its core markets, including golf, sports fields and grounds, professional contractor, rental, and residential sectors.
Financially, the divestiture of Pope Products is not expected to significantly impact The Toro Company's fiscal 2024 results. The company had already accounted for this transaction in its forecast for the third quarter and the full fiscal year.
Pope Products has been a part of Toro Australia, a subsidiary of The Toro Company, which has served various markets with outdoor solutions since 1925. The Toro Company, with a global presence in over 125 countries, generated net sales of $4.55 billion in fiscal 2023. Its brand portfolio includes a wide range of products for turf and landscape maintenance, snow and ice management, underground utility construction, and more.
In other recent news, Griffon Corporation has been making significant strides in its business operations. The company recently reported a strong start to the fiscal year 2024, surpassing market expectations with robust revenue and EBITDA figures in the Home and Building Products segment. Despite a decrease in the Consumer and Professional Products segment's revenue, due to lower demand in North America and the UK, EBITDA showed improvement. Griffon also raised its full-year revenue guidance to $2.65 billion, with a $30 million increase in segment adjusted EBITDA forecasted at $555 million.
In addition to these financial highlights, Griffon, through its subsidiary The AMES Companies, Inc., has expanded its presence in Australia with the acquisition of Pope, a residential watering products company. This acquisition is expected to bring in an additional $25 million in annualized revenue and positively impact Griffon's earnings within the first full year of ownership. The integration of Pope is seen as a strategic move to reinforce Griffon's position in the global market, particularly in Australia where AMES has been actively growing its footprint.
InvestingPro Insights
In light of The Toro Company's strategic divestiture of Pope Products to The AMES Company, part of Griffon Corporation (NYSE:GFF), it is insightful to consider the financial health and market performance of Griffon Corporation. With a market capitalization of $3.16 billion, Griffon Corporation is positioned as a notable player in its industry. The company's P/E ratio stands at 15.95, reflecting investor sentiment and market expectations of its earnings capacity.
An InvestingPro Tip highlights that Griffon Corporation's management has been aggressively buying back shares, indicating confidence in the company's value and future prospects. Additionally, Griffon has a track record of raising its dividend for 4 consecutive years, demonstrating a commitment to returning value to shareholders. With a dividend yield of 0.94% as of the last dividend ex-date on May 29, 2024, and a significant dividend growth rate of 50% in the last twelve months as of Q2 2024, the company shows a strong shareholder yield.
Investors may also find it noteworthy that Griffon Corporation has maintained dividend payments for 14 consecutive years, a testament to its financial stability and reliability. With analysts expecting net income growth this year and three analysts having revised their earnings upwards for the upcoming period, the company's outlook appears promising. Moreover, the company's shares have delivered a high return over the last year, with a 60.16% price total return.
For those looking for more in-depth analysis and additional InvestingPro Tips, there are 12 more tips available on InvestingPro for Griffon Corporation, which can be accessed at https://www.investing.com/pro/GFF. Readers interested in subscribing to the InvestingPro service can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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