Armstrong World Industries acquiring Arktura
Armstrong World Industries, Inc. (AWI) has entered into an agreement to acquire Arktura, LLC,
Based in Los Angeles, Arktura is a designer and fabricator of ceilings, walls, partitions, and facades.
“The Arktura team is widely celebrated for bridging the gap between creative intent and manufacturing capabilities to bring about exceptional ceiling and wall designs for any kind of space,” said AWI CEO Vic Grizzle. “Consistent with our strategy to drive profitable growth, Arktura will help us reach a whole new level of design excellence, within both our architectural specialties and mineral fiber segments. We are excited about the possibilities ahead for our teams to collaborate and create innovative solutions that make a positive difference where we live, work, learn, heal and play.”
In connection with the transaction and subject to closing, AWI and Arktura also plan to form and launch Arktura Ventures LLC, an incubator for exploring and accelerating new product, technology, and materials solutions in architecture, design, engineering and construction, above and beyond their existing core businesses.
Arktura Ventures is expected to be co-managed and co-led by representatives from both organizations, with AWI maintaining majority ownership and control. Arktura Ventures would complement AWI’s strategic growth initiatives, including its digitalization, business development and sustainability platforms.
“Kevin Kane, Rob Kilian and I look forward to completing the transaction and joining Armstrong,” said Arktura CEO Chris Kabatsi. ”With our combined resources, we see the opportunity to redefine what is possible and create truly transformative products and systems in the architectural space for the pandemic environment and beyond. With Armstrong, we have found a company with an incredible history and management team, and we are thrilled to be embarking on this journey of innovation and sustainability with them.”
The deal is expected to close before the end of 2020. Following closing, Arktura is expected to become a wholly-owned subsidiary of AWI and to retain its company name, brand, organizational structure and employee base, while continuing to sell through its current independent sales network, which has been integral to Arktura’s success and growth.
Arktura has projected 2020 revenues of approximately $37M. AWI said that it expects to fund the acquisition with its revolving credit facility and available cash. The price of the acquisition was not disclosed by AWI.
Based in Lancaster, Pa., AWI has sales of more than $1 billion in 2019.