In a move aimed at expanding Armstrong's growth in the engineered wood segment, Armstrong World Industries announced that it has purchased Vicksburg, Miss.-based Capella Wood Floors. As part of the purchase agreement, Capella employees will retain their seniority and be part of future expansion, according to Armstrong. The flooring manufacturer said it also expects to increase Capella's workforce to take full advantage of the company's plant capacity. Other terms of the deal were not disclosed.
Established in 2000, Capella is known for its distinctive line of 3/4-inch engineered hardwood flooring.
"It is a huge compliment to the employees of Capella that a company of the size and quality of Armstrong would seek us out for acquisition," said Richard M. Lingle, Capella's chairman. "Without the hard work and dedication of the entire work force over the last couple of years, the sales growth of Capella could not have occurred."
Capella's sales growth has exceeded 24 per cent each of the past two years and anticipates exceeding that number again in 2006, Lingle noted.
Added Shannon Fuller, Capella president and CEO, "The fact that we have excess plant capacity and the ability to produce a quality product unique in the marketplace made us very attractive to Armstrong. "We were caught somewhat by surprise. We provide veneers to Armstrong's other plants on an ongoing basis. Officials from the company recently approached us about a possible acquisition and the discussions accelerated rapidly."
Frank Ready, president and CEO of North American Flooring Products, Armstrong, said the purchase will help Armstrong expand in the "high-growth engineered segment."
"Through the Capella acquisition we are adding a terrific manufacturing capability, upside in terms of capacity, and an additional brand already established in the marketplace," he said. "The fine work done by the Capella organization has positioned the company to take this next step. We are extremely excited about the acquisition and the future growth opportunities this provides."
Armstrong buys Capella; plans call for increased plant capacity
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