AHF Products and Gordon Brothers, an investment firm, entered into an agreement to purchase Armstrong Flooring’s North American assets for $107 million in cash.
AHF Products and Gordon Brothers, an investment firm, entered into an agreement to purchase Armstrong Flooring’s North American assets for $107 million in cash.
The deal still needs approval by a bankruptcy court to be completed. A court hearing on whether to approve the sale is slated for July 12. As part of the purchase, AHF will operate Armstrong’s plants in Lancaster and Beech Creek Township, Pa., and Kankakee, Ill.
Armstrong filed for bankruptcy in May, reportedly $318 million in debt, according to LancasterOnline. The auction to AHF and Gordon Brothers does not include Armstrong’s Chinese and Australian businesses.
“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,” Armstrong President and CEO Michel Vermette stated.
“We believe this transaction represents tremendous opportunity for both AHF Products and our channel partners and continues our growth as a leader in the flooring industry,” AHF President and CEO Brian Carson told LancasterOnline.
The agreement is an interesting twist on the history of the two companies: AHF Products was formed after Armstrong sold its wood flooring segment to a private equity firm in 2018 for $100 million. AHF changed ownership in early 2022 when it was sold to Paceline, a private equity firm based in Dallas.
AHF’s flooring product offerings have grown to include vinyl plank and laminate options, and the company purchased Parterre Flooring Systems in early 2021.Â