Armstrong World (AWI) Closes Armstrong Flooring Spin-Off
Armstrong World Industries, Inc. AWI has completed its previously announced spin-off of its flooring business into an independent public company, Armstrong Flooring, Inc. AFI.
Per the terms of the spin-off, Armstrong World stockholders retained their shares in the company. For two shares held in Armstrong World as of Mar 21, 2016, shareholders received one share in Armstrong Flooring.
In Feb 2015, Armstrong World’s board of directors had approved a plan to separate its Flooring and ceiling (building products) business into two independent public companies. As separate companies, each will benefit from increased strategic focus, streamlined operating structures and improved capital allocation.
Armstrong Building Products – Leader in Ceiling Solutions
Following the spin-off, Armstrong World will comprise the Armstrong Building Products unit. It is a global leader in suspended ceiling solutions that are used in renovation as well as new construction, both in commercial and residential spaces.
Armstrong Building Products contributed approximately $1.3 billion to Armstrong World’s revenues in 2015. Going forward, Armstrong World will continue to fortify its leadership position in key domestic and international markets by working on its recently completed investments in expanded sales and manufacturing capabilities. Armstrong Building Products will operate 25 manufacturing facilities in 8 countries with a total workforce of around 3,700 employees.
Armstrong Flooring – Leader in Flooring Products
Armstrong Flooring is a leader in the design, manufacture and sales of high-quality flooring products in both North American and Asian markets. It generated revenues of $1.2 billion in 2015. Armstrong Flooring’s North American and international commercial businesses provide high performance resilient flooring products, including vinyl sheet, linoleum, vinyl composition and luxury vinyl tile, with significant ongoing investments. It will pursue these markets under its well-known brands, including Armstrong and Bruce. Armstrong Flooring will operate 17 manufacturing facilities in 3 countries with 3,700 team members.
Armstrong World currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same sector are Gibraltar Industries, Inc. ROCK and Headwaters Inc. HW, both sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
HEADWATERS INC (HW): Free Stock Analysis Report
ARMSTRONG WORLD (AWI): Free Stock Analysis Report
GIBRALTAR INDUS (ROCK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
