After disclosing buyers for some of its operations in North America, Armstrong Flooring has unveiled deals to sell its remaining businesses.
- In a news release July 11, the company identified buyers for its operations in Australia and China.
Who: The Australian assets — including a factory in Braeside, Victoria — are going to a group of companies identified as the Cowes Bay Group, which is paying $31 million and assuming certain liabilities.
- he group includes these firms, according to legal filings: Braeside Mills Investments, Gippsland Lakes Victoria Holdings and HS McKendrick Family Nominees as trustee of the Mills Unit Trust.
- The McKendrick family previously owned an Australian carpet maker called Godfrey Hirst, which was bought by Georgia-based Mohawk Industries in 2017.
- The Chinese assets — including a factory in Wujiang, Jiangsu — are going to a Chinese flooring company called Zhejiang Gimig Technology Co., which is paying $59 million, according to legal filings.
- Both buyers plan to continue the operations, according to the news release.
What’s next: The deals are scheduled for a hearing July 12 in bankruptcy court, as is the deal for North American assets of Armstrong Flooring.
- Mountville-based AHF Products and Boston-based Gordon Brothers have agreed to pay $107 million for assets that include plants in Lancaster, Beech Creek and Kankakee, Illinois.
- “We believe this transaction represents tremendous opportunity for both AHF Products and our channel partners and continues our growth as a leader in the flooring industry,” Brian Carson, AHF president and CEO, said in a statement.
- The combined value of all three deals is $197 million.
- The company’s lenders, meanwhile, are allowing the company to use its post-bankruptcy loan and other cash to continue operations until the deals close, according to the news release.
Is anything not being sold: Plants in Stillwater, Oklahoma, and Jackson, Mississippi.
- Armstrong Flooring plans to close them later this month.
- The 593,000 square-foot Stillwater plant was appraised at $20 million, according to previous bankruptcy filings. The 180,000 square-foot Jackson plant was appraised at $3.625 million.