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.
READ MORE: VB pins hopes on mid-strength as Aussies drop classic beers
"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".
READ MORE: Sussan Ley's parting shot to Angus Taylor as she leaves politics after 25 years
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.
READ MORE: Shark warning after Sydney deluge floods city
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.
NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.
- Download the 9NEWS App here via Apple and Google Play
- Make 9News your preferred source on Google by ticking this box here
- Sign up to our breaking newsletter here
