New York, NY – September 26, 2012 – American Industrial Partners (“AIP”) has entered into a definitive purchase agreement to acquire the cabinet products business of Armstrong World Industries (“AWI”). The transaction is expected to close in the fourth quarter of this year. The future business, headquartered in The Colony, TX, with manufacturing operations in Thompsontown, PA., will operate under the trade name Armstrong Cabinet Products (“ACP”) under the terms of a two year license agreement.
ACP, with approximately 750 employees, is the seventh largest manufacturer and distributor of cabinets in the United States. It offers six wood species for its stock and semi-custom cabinets, including cherry, maple, oak, birch, plantation hardwood, and laminate/thermofoil, and serves over 3,000 customers through a network of 26 facilities consisting of ACP-branded showroom/selection centers, regional distribution centers, and warehouses, all in the United States.
AIP has a long history of successfully buying North American headquartered businesses, such as Armstrong Cabinet Products, and partnering with management to drive growth. “We feel fortunate to have found a business with such experienced employees and outstanding products to add to our portfolio of companies,” said Joel Stanwood of AIP. Mr. Stanwood further commented, “The Company’s revenues are closely related to housing completions and general repair and remodeling in the housing sector. We expect Armstrong Cabinet Products to grow as these markets continue their recovery.”
“Exiting our cabinets business supports our business strategy to focus on our core businesses – flooring and ceilings – around the world.” said Armstrong CEO Matt Espe. “We are working closely with AIP to ensure a smooth transition for our employees, customers and suppliers.”
About American Industrial Partners
American Industrial Partners (“AIP”) is an operationally oriented middle-market private equity firm that makes control investments in North American-based industrial businesses serving domestic and global markets. The Firm has deep roots in the industrial economy and has been active in private equity investing since 1989. To date, AIP has completed over 30 transactions and is currently managing more than $1.1 billion in equity capital. AIP invests in all forms of corporate divestitures, management buyouts, recapitalizations, and going-private transactions of established businesses with revenues of $100 million to $500 million. For more information about American Industrial Partners, contact Ben DeRosa, Partner at 212-627-2360, extension 200.