Firms to pay $90M for overseas assets of Armstrong Flooring

After disclosing buyers for some of its operations in North America, Armstrong Flooring has unveiled deals to sell its remaining businesses.

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 InvestmentsGippsland 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 Hirstwhich 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.


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