The Armstrong World Industries Inc. Asbestos Personal Injury Settlement Trust and Armor TPG Holdings, the majority stockholders for Lancaster County-based Armstrong World Industries Inc., could own less than 54 percent of the company if they sell nearly 6 million shares of stock.
Armstrong, which manufacturers building materials including ceiling tiles and flooring, announced the stock sale yesterday and said all proceeds would go to the asbestos trust and Armor TPG.
The trust, which was formed in 2006 to manage asbestos injury claims at the end of Armstrong’s Chapter 11 bankruptcy proceedings, together with Armor TPG owned about 63.7 percent of the company’s outstanding common shares at the end of September, according to a filing with the U.S. Securities and Exchange Commission.
The trust and Armor TPG are selling 5.2 million shares, with the option for institutional investors underwriting the sale to buy an additional 780,000 shares, according to the filing. If all options are exercised, the trust and Armor TPG will own about 53.53 percent of the company’s shares.
Armor TPG is an arm of Fort Worth, Texas-based buyout company TPG Capital, a division of private investment firm TPG. In 2009, it acquired about 8 million shares of company stock from the trust, making it a significant shareholder. Armor TPG and the trust have an agreement to be a voting block on Armstrong’s board for certain matters.
Armstrong recently completed the $27 million sale of its cabinet business to American Industrial Partners.