LANCASTER, PA - Armstrong 's cabinet business has been acquired by American Industrial Partners (AIP), and equity investment firm based in New York City. The previously announced divestiture of Armstrong's cabinet operations closed formally October 31, 2012.
AIP will operate the cabinets business under the name ACProducts, Inc., which has licensing rights to certain Armstrong trademarks and can use the Armstrong Cabinet Products trade name for two years. ACProducts also must honor warranty claims.
It is not AIP's first venture into wood products; In August 2011, AIP acquired Northwest Hardwoods, the $400 million Tacoma-based hardwood manufacturing and distribution business serving the furniture, cabinetry, flooring, molding, door and window and pallet manufacturers in August 2011.
Armstrong's cabinets business had sales of $136 million in 2011 and has approximately 750 employees. Armstrong reported cabinets net sales for the third quarter of 2012 were $35.4, down $4.1 million for 2011; and $102 million for the first nine months of the year, down $5.4 million for the 2011 period. Armstrong takes an $11 milllion charge for the divestiture.
Armstrongs revenues fell overall, to $694 million for the third quarter. Armstrong wood flooring sales dropped 3.8% to $122.4 million for the period. Armstrong net income rose 43.4% to $74 million.
"Exiting our cabinets business supports our strategy to focus on our core businesses – flooring and ceilings – around the world," said Armstrong CEO Matt Espe. " This was the right decision for us."
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