Armstrong World Industries, Inc.
AWIhas 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.
ROCKand Headwaters Inc.
HW, both sporting a Zacks Rank #1 (Strong Buy).
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