Armstrong World completes acquisition of wall and ceiling manufacturer
Armstrong World Industries Inc. completed its acquisition of a Missouri-based custom wood wall and ceiling manufacturer, which is the Manor Township manufacturer's largest deal to date.
Armstrong World said Monday it has finalized an agreement with Architectural Components Group Inc., a Marshfield, Missouri-based designer and manufacturer of wood ceilings and walls.
Architectural Components’ products are expected to complement Armstrong World’s existing wood ceiling and wall products. Architectural Components has annual revenue of approximately $35 million.
Plans for the acquisition were announced in January. And Armstrong World CEO Vic Grizzle said Architectural Components was on top of the company’s acquisition target list.
“The business is recognized among architects, designersand end-users as one of the leading wood product companies in our industry,” Grizzle said in a release. “Wood ceilings and walls is a double-digit growth category for AWI, and we plan to build upon ACGI’s solid foundation.”
Armstrong World posted net earnings in 2018 of $185.9 million, up from $154.8 million in 2017, according to filings with the U.S. Securities and Exchange Commission. Sales rose to $975.3 million in 2018, up from $893.6 million in 2017.
The acquisition allows Armstrong World to marry its brand strength and market reach to a company known for unique ceiling and wall design, said Charlie Chiappone, senior vice president of ceilings and walls solutions for Armstrong World.
Armstrong World said in the release that it funded the acquisition with available cash, but has not announced the final terms of the deal.