U.S. - Armstrong Flooring, Inc. has entered into a definitive agreement to sell its Wood Flooring segment to an affiliate of American Industrial Partners (AIP) for a purchase price of USD 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 fourth quarter of 2018.

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

Don Maier, Chief Executive Officer of Armstrong, commented, “Today’s announcement demonstrates our commitment to maximizing shareholder value and focusing our portfolio on profitable growth strategies. The wood flooring industry has been impacted by changing market dynamics and now is the right time to deepen our focus on LVT and other resilient flooring categories, where we are confident fundamentals remain strong for future growth.”