U.S. Armstrong Flooring to sell Wood Flooring unit for $100 mln

U.S. flooring products designer and manufacturer Armstrong Flooring, Inc.has agreed to divest its Wood Flooring segment to an affiliate of private equity firm American Industrial Partners for $100 million.

The net proceeds to the company from the transaction after purchase price adjustments are non-taxable and expected to be $85 to $90 million, which should increase Armstrong’s flexibility to further invest in its growth strategies and other value-enhancing opportunities.

American Industrial Partners will gain Armstrong Flooring’s wood flooring product portfolio and existing network of wood floor manufacturing facilities, staffed by an experienced wood flooring team. American Industrial Partners will own the Bruce brand and all other Wood Flooring segment brands.

Upon closing of the deal, Armstrong Flooring will intensify its focus on the fastest-growing parts of the flooring industry, including luxury vinyl tile and rigid core, as well as its wide range of resilient products including vinyl composition tile and resilient sheet. The transaction is expected to be completed at the end of the fourth quarter of 2018.