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.