* Says expects deal to close by Sept. 30
* Says deal to add to EPS and cash flow in 2011
* Expects revenue to rise 13-14 pct in Q3
July 20 (Reuters) - Diversified manufacturer Griffon Corp (GFF.N) said it would buy lawn and garden tools maker Ames True Temper from private equity firm Castle Harlan for $542 million in cash.
Ames True Temper, founded in 1774, is known for its long-handled non-power tools, including rakes and shovels, wheelbarrows, snow tools and pots and planters.
Griffon, which makes a sensors, garage doors and speciality plastic films, said it expects the deal to add to cash flow and earnings in fiscal 2011.
The deal will be financed by a $500 million term loan commitment from Goldman Sachs Lending Partners and about $75 million of Griffon's cash.
Separately, Griffon said it expects revenue to increase increase 13 percent to 14 percent in the third-quarter. In the second quarter, revenue grew 14 percent to $314 million.
For the Ames True Temper acquisition, Goldman Sachs & Co and Lazard Freres & Co. LLC acted as financial advisers to Griffon.
The Company expects to report its third-quarter results on August 5.
Shares of Griffon were up 1 percent at $12.00 in trading after the bell. They closed at $11.87 Monday on the New York Stock Exchange. (Reporting by Divya Sharma in Bangalore; Editing by Saumyadeb Chakrabarty)