Separation enhances strategic focus and value creation potential; flooring and ceilings businesses have distinct business models and financial profiles.
Armstrong World Industries Inc. announced that its Board of Directors has unanimously approved a plan to separate the Company’s Flooring business from its Ceilings (Building Products) business, creating two independent industry-leading publicly traded companies. The separation is intended to be a tax-free spin-off of the Flooring business to the Company's shareholders, and is expected to be completed in the first quarter of 2016.
Armstrong believes that separating its Flooring and Ceilings businesses will create two strong companies that are leaders in their respective markets and that will benefit from increased strategic focus, streamlined operating structures and improved capital allocation. Each public company will offer investors a distinct and compelling investment opportunity based on different operating and financial models, end-market business cycles and strategic growth opportunities.