AHF Products to purchase Armstrong Flooring assets
July 11, 2022 | 4:37 pm CDT
Armstrong Flooring

LANCASTER, Pa. -- Armstrong Flooring Inc., a leader in the design and manufacture of innovative flooring solutions, has entered into a binding Asset Purchase Agreement with a consortium of buyers consisting of AHF, LLC and Gordon Brothers.

The acquisition will include substantially all Armstrong Flooring Inc.’s North American assets for $107 million in cash and an assumption of specified assumed liabilities. The binding agreement was the culmination of the Company’s Chapter 11 auction process for its North American assets.

The auctions for the sale of Armstrong's Chinese and Australian businesses have not yet formally concluded, but the company's management expects to conclude them in the near term. Armstrong Flooring has received binding bids to acquire each of the Chinese business and the Australian business and will sign the definitive purchase agreements for these transactions as soon as the auctions close, according to a company statement. The Chinese and Australian businesses will continue to operate as usual and the operations remain unaffected by the Chapter 11 cases.

The AHF and Gordon Brothers consortium would acquire substantially all of the assets of North America. AHF plans to continue operating the Lancaster, Pa., Kankakee, Ill., and Beech Creek, Pa., locations, but close the Jackson, Miss., and Stillwater, Okla., locations on July 15, 2022. 

The proposed transactions are the outcome of a Court-supervised auction that commenced on June 27, 2022, during which the bid from the AHF and Gordon Brothers consortium was the sole binding bid received for substantially all of the North American assets. The proposed transactions are subject to Bankruptcy Court approval, as well as regulatory approvals and customary closing conditions.

“We have been working hard to execute an efficient and value-maximizing sale of the business while keeping the best interests of our valued stakeholders at the forefront of all that we do. In light of the agreement we have reached with AHF and Gordon Brothers, and the agreements we are close to signing with the buyers of the Chinese and North American businesses following consummation of the auction, Armstrong Flooring is now one step closer to achieving that goal,” said Michel Vermette, president and CEO. “We had hoped to identify a buyer for the entire business and avoid any closures of our facilities; however, based on the options available to us, we believe this is the best possible path forward for our business. This reflects the support of our ABL lenders, creditors, and other key stakeholders, and has been approved by our Board of Directors. While we cannot speak on behalf of the proposed buyers, we are encouraged that they see the potential of the company in the markets we serve and understand the role our people play in driving the business forward.”

 

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Larry Adams | Editor

Larry Adams is a Chicago-based writer and editor who writes about how things get done. A former wire service and community newspaper reporter, Larry is an award-winning writer with more than three decades of experience. In addition to writing about woodworking, he has covered science, metrology, metalworking, industrial design, quality control, imaging, Swiss and micromanufacturing . He was previously a Tabbie Award winner for his coverage of nano-based coatings technology for the automotive industry. Larry volunteers for the historic preservation group, the Kalo Foundation/Ianelli Studios, and the science-based group, Chicago Council on Science and Technology (C2ST).