Company behind Australian cultural icon Hills Hoist could soon be sold
The company behind one of Australia's most iconic products looks set to be put up for sale as its American owner focuses on operations closer to home.
Griffon Corporation, a US-based conglomerate, announced early this month it will conduct a "comprehensive review of strategic alternatives" for AMES Australia, the company that counts clothesline brand Hills among its portfolio of brands.
As part of that review, it appears AMES Australia could be sold.
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The company behind Hills Hoist clotheslines looks set to be sold by its American owner. Peter Rae
"AMES Australia has grown from a small business acquired as part of AMES in 2010 into a category leader in Australia and New Zealand," Griffon chief executive Ronald J. Kramer told investors on February 5.
"We will identify opportunities for our exceptional team in Australia to take the business to the next level while creating value for our shareholders."
He added the move was part of a "fundamental refocusing of our businesses into a pure-play building products company".
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Hills Hoists have been dotting Australian back yards for decades. Steven Siewert/Fairfax Media
The company is also putting AMES's United Kingdom operations through a similar process, and said the brands will be reported as discontinued operations from now on.
AMES Australia is expected to generate $US40 million ($56 million) in pre-tax earnings this financial year, according to Griffon.
The company has a host of garden brands under its umbrella, including Pope hoses and fittings, Trojan tools, and Hills.
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The clotheslines became a cultural icon for suburban Australia. Robert Rough AFR
The latter is the maker of the iconic Hills Hoist clothesline, which were a mainstay of suburban homes for decades and are still seen in back yards to this day.
Many of AMES's products are sold at hardware giants Bunnings and Mitre 10.
Griffon said it is being advised by Goldman Sachs on the strategic overhaul.
nine.com.au has contacted AMES and Goldman Sachs for comment about what the implications will be for Australian customers.
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