Armstrong World Industries, the ceiling, wall, and suspension system manufacturer, is selling its EMEA and Pacific Rim businesses to Knauf International GmbH for $330 million.
After closing adjustments, fees, and taxes, Armstrong said the sale will net the company about $250 million in cash. The deal is expected to close in mid-2018, the Lancaster, Pa.-based company reported. Proceeds from the sale will be used to focus on its Americas business.
The sale includes the businesses of the Wave joint venture in EMEA and the Pacific Rim, as well as Armstrong France and Wave France. Armstrong forecasts that the EMEA and Pacific Rim businesses will have combined 2017 net sales of $425 million.
“While I was pleased with the recent progress that our EMEA and Pacific Rim teams were making, we ultimately concluded that industry consolidation in those markets is required to provide the scale and efficiencies necessary to achieve acceptable and sustainable returns," said Vic Grizzle, CEO of Armstrong World Industries.
“Our exit from EMEA and the Pacific Rim will be a step in an ongoing transformation plan that includes significant investment and innovation in high end mineral fiber manufacturing along with expanding capabilities in Architectural Specialties, all in the Americas where we already hold leading share positions and unrivaled capabilities,” Grizzle added.