Griffon Corp. has closed on the $23-million purchase of the pots and planters business of Southern Sales & Marketing Group Inc., a line of products sold under the Southern Patio brand name.
Southern Patio designs, makes and markets landscape accessories. For its most recent fiscal year, ending Sept. 30, it had revenue of more than $40 million.
In premarket trading Tuesday Griffon was down 56 cents, to $8.79. Year to date the company's shares are down 31 percent.
Griffon said it plans to integrate Southern Patio into its subsidiary Ames True Temper Inc., which makes consumer and professional lawn and garden tools, wheelbarrows and other outdoor work implements.
With a market capitalization of $550 million, Griffon, a diversified civilian and defense manufacturing company was founded in 1959. It owns Telephonics Corp., a Melville-based subsidiary with 1,300 employees.
Long based in Huntington, then in Jericho, Griffon is now headquartered in Manhattan and has 5,700 employees overall.
Griffon expects the Southern Patio transaction to immediately improve cash flow and earnings per share.
Griffon bought Ames True Temper Inc. last year in a $542-million deal with about $75 million in cash and a $500 million loan from Goldman Sachs Lending Partners Llc.
Other Griffon brands include Dynamic Design, Garant, UnionTools, Razor-Back, Jackson and Hound Dog.