Why Griffon Stock Is Soaring Today
Shares of Griffon (NYSE: GFF) soared on Monday as the company started looking at "strategic alternatives," including but not limited to a sale of the company or a spinoff of some of its operating segments. The mini-conglomerate's stock was trading 23.3% higher at 1:25 p.m. ET.
The company behind product lines such as Clopay garage doors, ALES gardening tools, and Telephonics defense surveillance systems is reviewing its options for maximizing shareholder value. The Telephonics division is already being sold to TTM Technologies (NASDAQ: TTMI) in a $330 million all-cash deal announced last month and scheduled to close in the current fiscal quarter.
Griffon may continue splitting itself up. It may also find a buyer for the entire remaining company. Other options include stock buybacks or an accelerated dividend program. The company may also stay the course if no significantly better alternative is found.
Source Fool.com