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Armstrong Flooring sells wood flooring business

16.11.2018 − 

Armstrong Flooring intends to sell its wood flooring activities to the private equity company American Industrial Partners ("AIP") for around US$100 m. The purchase price corresponds to 7.2 times the Adjusted EBITDA generated by Wood Flooring in the last twelve months. Both companies signed a binding agreement in mid-November. The closing is expected to take place by the end of the fourth quarter after fulfilment of the agreed conditions.

Armstrong's Wood Flooring division currently comprises six production sites in the USA with a total of around 1,700 employees. The wood flooring produced there is primarily sold on the North American markets. As part of the transaction, AIP will acquire all Armstrong flooring brands for the wood flooring segment, including the "Bruce" brand. In addition, the company will also be able to use the Armstrong umbrella brand for the sale of wooden flooring during a transitional period of more than two years.

Armstrong Flooring will focus the sale of its wood flooring business on what it sees as a much better performing business with Luxury Vinyl Tiles (LVT) and Rigid Core products, as well as other resilient floor coverings such as Sheet Vinyl and Vinyl Composition Tiles.

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