Armstrong completes sale of hardwood flooring business
Armstrong Flooring has completed the sale of its hardwood flooring business and will focus on its most profitable products into the new year.
The approximately $90 million deal with American Industrial Partners, a middle market private equity firm based in New York City, includes Armstrong's six wood flooring manufacturing facilities. The deal was first announced in November.
Don Maier, Armstrong CEO, stated in a press release announcing the completion of the sale that since the company is no longer selling hardwood flooring, it can focus on its sales of resilient flooring, which have proven to be more profitable for the Lancaster-based business.
In its third quarter earnings report for 2018, Armstrong reported that its wood flooring sales were down to $101.6 million from $114.1 million in the same quarter in 2017. Its resilient vinyl flooring sales however, grew from $194.4 million to $208.1 million.
"This divestiture positions us well for the future, as we are now able to concentrate our efforts on attractive and growing resilient categories," Maier said in the release.
As part of the deal, American Industrial will absorb Armstrong's 1,700 employees currently working in the six facilities. As Armstrong discontinues its wood flooring business, it expects to let go of 50 employees from its corporate office.
The deal also allows for American Industrial to continue to sell products under the Armstrong name for two years and is expected to finish the capital adjustment process in the first quarter of 2019.