Armstrong Flooring, Inc. has entered into a definitive agreement to sell its Wood Flooring segment to an affiliate of American Industrial Partners for a purchase price of $100 million.
The transaction is valued at approximately 7.2 times the Wood Flooring segment’s trailing twelve month Adjusted EBITDA. As of October 31, 2018 Armstrong Flooring’s Wood Flooring segment comprised six U.S. manufacturing facilities primarily serving the North American region and approximately 1,700 employees.
The transaction, which is subject to customary closing conditions, is expected to be completed at the end of the 4Q 2018. 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 the Company’s flexibility to further invest in its growth strategies and other value-enhancing opportunities.
Armstrong Flooring, Inc. is a global leader in the design and manufacture of innovative flooring solutions.