LANCASTER, Pa. — Armstrong World Industries Inc. announced it has entered into an agreement to acquire the business and assets of Architectural Components Group, Inc., a producer of custom wood ceilings and walls with annual revenues of approximately $35 million.

Financial terms of the transaction were not disclosed, although Armstrong World Industries (AWI) said it will fund the acquisition with available cash. Announced Jan. 22, the acquisition is expected to be finalized in the first quarter of 2019 and is subject to customery closing conditions.

AWI said Architectural Components Group's (ACGI) capabilities and product solutions will complement the company's existing wood ceiling and wall solutions, and further strengthen its growing position in the market.

“This acquisition will mark our largest to date and a continuation of our inorganic growth initiatives to increase our participation in the high-value Architectural Specialties segment," said AWI CEO Vic Grizzle. "With ACGI, we will dramatically expand our Architectural Specialties portfolio and capabilities to meet the growing demand for wood ceilings and walls.

"We look forward to completing the transaction and welcoming the ACGI team to AWI in the near future,” he added.

ACGI manufactures various types of wall and ceiling systems, including curved, acoustic and linear panels, baffles, beams, cubes and grilles. The wood systems are offered in a variety of species and finishes, according to the company's website. ACGI was founded in 2001, and is based in Marshfield, Missouri.

Founded in 1860 and based in Lancaster, Pennsylvania, Armstrong World Industries (NYSE: AWI) is a global leader in the design and manufacture of  commercial and residential ceiling, wall and suspension system solutions. Its sister business, Armstrong Flooring Inc., is an independent, publicly traded company.

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