Lancasater, Pa. -- Armstrong Flooring announced that it has completed the previously disclosed sale of its Wood Flooring segment to an affiliate of American Industrial Partners (AIP). Proceeds from the sale were approximately $90 million, net of closing costs, transaction fees and taxes. The transaction is subject to a customary post-closing working capital adjustment process, which is expected to be completed in the first quarter of 2019. Armstrong currently expects to return a portion of the net proceeds of the sale to shareholders to be determined by its board of directors.
Completion of the sale permits Armstrong Flooring to intensify its focus on the fastest-growing parts of the flooring market, including Luxury Vinyl Tile (LVT) and rigid core, as well as a wide range of resilient categories such as Vinyl Composition Tile (VCT), resilient sheet and its Diamond 10 line. This exclusive focus on resilient flooring is expected to strengthen the company’s product and end market mix while improving its ability to innovate and enhance the profitability of its portfolio.
“We are excited to enter 2019 with an exclusive focus on resilient flooring, which improves the profitability of our award-winning product portfolio,” said Don Maier, CEO. “This transaction is immediately accretive to our EBITDA margin and together with the right-sizing of our cost structure unlocks additional value for Armstrong Flooring’s shareholders. This divestiture positions us well for the future, as we are now able to concentrate our efforts on attractive and growing resilient categories. Additional financial information regarding the transaction will be available to shareholders after the New Year.”
Armstrong expects to disclose in the near future additional financial information regarding the company and the effects of the sale transaction, including certain reclassified historical financial information in connection with the sale and discontinued operations treatment of the Wood Flooring Segment, some of which will be made available in the investor relations section of the company’s website within several business days.
For more information, visit www.armstrongflooring.com.