TPG Capital said it has agreed to purchase 7 million shares of Armstrong World Industries (AWI), along with economic interests in more than 1 million shares from Armstrong’s Asbestos Personal Injury Settlement Trust. The transaction is expected to result in approximately $180 million of proceeds for the trust.
TPG said it will also initiate a tender offer of nearly 4.5 million shares (approximately 8 percent) of the company’s outstanding shares from investors not affiliated with the trust.
“TPG has a proven record of helping companies increase their value through operational improvements and by providing an environment in which the company can better realize its longer term strategic potential,” said Michael D. Lockhart, Armstrong’s chairman and ceo. “We believe TPG’s involvement should make it easier for AWI to realize its objective to emerge from the downturn better positioned than it was when it entered, and to remain solidly profitable throughout the period.”
Private equity group to buy 7 mil shares from Armstrong
September 29, 2009