Armstrong Flooring Completes Sale of Wood Flooring Segment

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.