Armstrong sells cabinet business

Armstrong World Industries has entered into an agreement to sell its cabinets business to American Industrial Partners for $27 million, according to a company announcement. Headquartered in The Colony, Texas, Armstrong’s cabinet division has a manufacturing facility in Thompsontown, Pa., and employs approximately 750 people. Sales in 2011 were $136 million, just under 5% of the company’s total sales. The unit had a loss in 2011 and had not been profitable since 2007.

“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."

American Industrial Partners was founded in 1989 and is an operationally oriented middle-market private equity firm that makes control investments in North American-based industrial businesses serving domestic and global markets. The transaction is expected to be completed in the fourth quarter of 2012. 

Want to read more?
This content is available only to registered users. Log in to read the rest of this article or create a free account.
© 2014 Home Channel News. All Rights Reserved.