Armstrong announces agreement to sell its cabinets business

Home News Armstrong announces agreement to sell its cabinets business

Lancaster, Penn.—Armstrong World Industries has entered into a definitive agreement to sell its cabinets business (“ACP”) to American Industrial Partners (“AIP”) for $27 million. ACP is headquartered in The Colony, TX, and has a manufacturing facility in Thompsontown, PA.  ACP had sales of $136 million in 2011 and has approximately 750 employees.  The transaction, which is subject to customary closing conditions and working capital adjustments, is expected to be completed in the fourth quarter of 2012.

“Exiting our cabinets business supports our business strategy to focus on our core businesses – flooring and ceilings – around the world,” said Armstrong CEO Matt Espe.  “We are working closely with AIP to ensure a smooth transition for our employees, customers and suppliers.”

Starting in the third quarter of 2012, the cabinets business will be classified as a Discontinued Operation.  Therefore, we expect sales from continuing operations in the third quarter will exclude approximately $40 million of sales from the cabinets segment.  Profitability and cash flow from continuing operations will be largely unaffected.

SunTrust Robinson Humphrey acted as the exclusive financial advisor to AWI in the sale of ACP.


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