The board of directors of Armstrong Flooring (AFI) is considering selling the company. According to a release on 31 December, Houlihan Lokey Capital has already been engaged to examine various strategic options and assist with a sale process.
Parallel to the announcement of this action, AFI also gave information about changes in its lines of credit. In connection with the change in the term loan, the current lender Pathlight Capital LB has also put addition funds of US$35m at AFI’s disposal. With this injection of capital, the company sees itself well positioned to realise the planned strategic initiatives and to continue to run the business efficiently.
AFI has been struggling with regressive performance figures for some considerable time. Sales revenue increased again recently, but the earnings positions has continued to deteriorate. All the relevant result were negative in the third quarter 2021. Faltering supply chains and rising material and transport costs are regarded as the main reason for the regressive development. The company has launched a series for countermeasures. Planned investment measures have been deferred, for example. Costs of roughly US$4m have been saved by job cuts and other restrictions on expenditure.