Armstrong Flooring, Inc. has completed the sale of its Wood Flooring segment to an affiliate of American Industrial Partners (“AIP”). Proceeds from the sale were approximately $90 million, net of closing costs, transaction fees and taxes. The transaction is subject to a customary post-closing working capital adjustment process, which is expected to be completed in the 1Q 2019, as the company says in the press release received by Lesprom Network.
Completion of the sale permits Armstrong Flooring to intensify its focus on the fastest-growing parts of the flooring market, including Luxury Vinyl Tile (“LVT”) and rigid core, as well as a wide range of resilient categories such as Vinyl Composition Tile (“VCT”), resilient sheet and its Diamond 10® line of products. This exclusive focus on resilient flooring is expected to strengthen the Company’s product and end market mix while improving its ability to innovate and enhance the profitability of its portfolio.
In conjunction with the closing of the sale transaction, the Company also replaced its existing asset backed debt facility with a new secured credit agreement comprised of a $75 million Term Loan A and a $75 million revolving credit facility. Borrowings under the facility will bear interest at a rate of LIBOR plus a spread of 1.50% to 2.25%, depending on the Company’s net leverage ratio, with an initial spread of 1.75%. The new credit arrangements have a five-year term, maturing in 2023.
Armstrong Flooring, Inc. is a global leader in the design and manufacture of innovative flooring solutions.
