In May, Armstrong Flooring signed a definitive asset purchase agreement to acquire the VCT business of Mannington Mills for $36 million. Mannington would be eligible to receive earn out payments based on volume retention metrics through mid-2020. Armstrong Flooring intends to use its existing plant and distribution networks to accommodate the increase in VCT volume. The transaction is expected to close during the second quarter of 2017.
Don Maier, Armstrong Flooring president and CEO, said, “I am pleased to announce this transaction. It gives us a good opportunity to increase revenue within the well-structured VCT category which has historically generated above-average profitability within our product portfolio. We expect this transaction to be accretive to earnings in 2018 as we drive profitability through improved capacity utilization and scale using our existing facilities.”