LANCASTER, PA- Armstrong World Industries Inc. announced late Wednesday it will sell its cabinet business to American Industrial Partners (AIP) for $27 million. The transaction is expected to be completed in the fourth quarter of 2012.

Founded in 1989, the private equity firm AIP is headquartered in New York, NY.

Reportedly the seventh largest manufacturer and distributor of cabinets in the United States, Armstrong Cabinet Products recorded sales of $136 million in 2011 and has approximately 750 employees. Armstrong World Industries (AWI) said it will instead concentrate on its core businesses of flooring and ceilings. Consolidated net sales for the company last year totaled approximately $2.9 billion.

"Exiting our cabinets business supports our business strategy to focus on our core businesses – flooring and ceilings – around the world," Armstrong CEO Matt Espe said in a statement. "We are working closely with AIP to ensure a smooth transition for our employees, customers and suppliers."

“We feel fortunate to have found a business with such experienced employees and outstanding products to add to our portfolio of companies,” Joel Stanwood of AIP said in a statement.

According to the news release, Armstrong's cabinets business will be classified as a "Discontinued Operation" effective third quarter. "Therefore, we expect sales from continuing operations in the third quarter will exclude approximately $40 million of sales from the cabinets segment. Profitability and cash flow from continuing operations will be largely unaffected," Espe said.

As recently as May 2012, Armstrong Cabinet Products was producing four thousand cabinets a day at the 300,000-square-foot Thompsontown, PA-based manufacturing facility. AWI entered the cabinet market in 1998 following its acquisition of Triangle Pacific's cabinet and flooring businesses.

A sustainable manufacturer, Armstrong Cabinet Products specializes in semi-custom kitchen and bath cabinets for the multi-family as well as single family new construction and remodeling markets. Products are sold through independent retailers and building supply distributors nationwide; the company recently announced an agreement to also work with 84 Lumber for the sale of its products.