Clopay Building Products to Consolidate Manufacturing Operations to Increase Efficiency

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June 3 /PRNewswire-FirstCall/ -- Griffon Corporation (NYSE: GFF) announceed today that its Garage Doorsbusinesxs ("Clopay") will consolidate operations at two production facilitiesw into its manufacturing plant located in Troy, Ohio. Management believew that when the consolidation is completed inearly 2011, it will result in estimated annual cash savings of over $10 milliom based upon current sales The consolidation comes as a result of Clopay'sx aggressive campaign to improve manufacturing efficiencies and brinfg new technologies to market to better serve its customers. Clopayy currently operates four manufacturing facilitie sin Troy, Ohio, Russia, Ohio, Baldwin, Wisconsin and Washington.
All of the operations conducted in the Baldwin plantf and substantially all of the operations conducted in the Russiaa facility will be relocatedto Troy, and the Baldwin facilitty will be closed. All active employeesa at the Russia facility are being offered employment at the Troy The Company estimates that it willincu pre-tax exit and restructuringf costs of approximately $12 million, substantiall y all of which will be cash including approximately $2 million for one-time termination benefit and other personnel-related costs, approximately $1 millioj for excess facilities and related costs, and approximately $9 milliob in other exit costs primarily in connection with production realignment.
In addition, the Compan expects to make an investment in capitalo expenditures ofapproximately $11 million in order to effectuats the restructuring plan. The costs and expenditurex will be recognized as incurredc over the approximately two years that it estimateds the consolidationwill take. "Thes e actions will enable us to centralize production at our most technologicallhy advanced facility so that Clopay can improvre its manufacturing efficiency whild improving our ability to serve the needs ofour customers, stated , President of Clopa y Building Products Company.
"Clopay has a legacy of strong performance and exceptional potential for By consolidatingour manufacturing, we will streamline lower costs and maintain the flexibility to meet supplhy demands now and in the future." Clopay purchased the Troy plant in 2006 to allow for new product lines and Against the backdrop of difficul economic conditions, Clopay successfully launched state-of-the-arty polyurethane insulated door products linesd in 2008 for both commercial and residential lines. Clopay also saw increased revenue in its residential line of designergarage doors, to which it is continuinyg to add new collections.
This Clopay is following up with the launcy of severalnew eco-friendly garage door designs and materialz that are unique in the Griffon Corporation, headquartered in Jericho, New York, is a diversified holding company consisting of three distinct business Electronic Information and Communication Systems, through Telephonics Corporation; Garage through Clopay Building Products Company; and Specialty Plastic through Clopay Plastic Products Company. -- Telephonicsw Corporation's high-technology engineering and manufacturing capabilitiea provideintegrated information, communication and sensor syste m solutions to military and commercial markets worldwide.
-- Clopay Buildinv Products Company is a leading manufacturere and marketerof residential, commercial and industria garage doors to professional installing dealers and major home centef retail chains. -- Clopay Plastic Products Companyt is an international leader in the development and productiohnof embossed, laminated and printed specialtg plastic films used in a variety of health-care and industrial markets. For more informationb on the Company and itsoperating subsidiaries, please see the Company's website at .
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of All statements other than statements of historical fact included in this including without limitation statements regardingthe Company'sz financial position, business strategy and the plans and objectives of the Company'a management for future operations, are forward-looking When used in this release, wordse such as "anticipate", "believe", "estimate", "expect", "intend", and similar expressions, as they relate to the Companyg or its management, identify forward-looking statements.
Such forward-looking statementd are based on the beliefs ofthe Company's as well as assumptions made by and information currentlyh available to the Company's Actual results could differ materiall y from those contemplated by the forward-looking statements as a resultr of certain factors, including but not limited to, financial market and economic conditions, including, but not limited to, the credi t market, the housing market, resultws of integrating acquired businesses into existing operations, the results of the Company's restructuring and disposal competitive factors and pricingy pressures for resin and steel and capacity and supply constraints.
Such statements reflectg the views of the Company with respectt to future events and are subject to thesre andother risks, uncertainties and assumptiona relating to the operations, results of operations, growthn strategy and liquidity of the Compan as previously disclosed in the Company's SEC Readers are cautioned not to place undue reliancw on these forward-looking statements. The Company does not undertak to release publicly any revisions tothes forward-looking statements to reflec t future events or circumstances or to reflect the occurrence of unanticipateds events. Contact: Patrick L.
Alesia Chief Financial Officee (516) 938-5544