Armstrong World Industries to Separate into Two Public Companies
The board of directors of Armstrong World Industries, Inc., Lancaster, Pa., has unanimously approved a plan to separate the company’s flooring business from its ceilings (building products) business, creating two independent publicly traded companies. The separation is intended to be a tax-free spin-off of the flooring business to the company’s shareholders, and is expected to be completed in the first quarter of 2016.
Each public company will offer investors a distinct and compelling investment opportunity based on different operating and financial models, end-market business cycles and strategic growth opportunities.
AWI will be made up of the Armstrong Building Products unit. In 2014, Armstrong Building Products generated approximately $1.3 billion of revenue. With 3,400 team members worldwide, the company will operate 22 manufacturing facilities in eight countries including the Worthington Armstrong Venture. Vic Grizzle, currently CEO of Armstrong Building Products, will lead AWI as CEO.
Armstrong Flooring will continue to design, manufacture and sell flooring products in the North American and Asian markets. In 2014, Armstrong Flooring generated approximately $1.2 billion of revenue. With 3,600 team members, the company will operate 17 manufacturing facilities in three countries. Don Maier, currently CEO of Armstrong Flooring Products, will serve as the CEO of Armstrong Flooring.