LANCASTER, Pa., July 10. 22, 2022 (GLOBE NEWSWIRE) — Armstrong Flooring, Inc. (OTC: AFIIQ), a leader in the design and manufacture of innovative flooring solutions (“Armstrong Flooring” or “the Company”), today announced that it has entered into a binding asset purchase agreement with a consortium of buyers consisting of AHF, LLC and Gordon Brothers, pursuant to which these buyers will acquire substantially all of the North American assets of Armstrong Flooring Inc. for $107 million in cash and the assumption of specified assumed liabilities. This binding asset purchase agreement was the culmination of the company’s Chapter 11 auction process for its North American assets.
The auctions for the sale of the company’s Chinese and Australian operations have not yet been formally concluded, but we expect to conclude them in the short term. The Company has received firm offers to acquire each of the Chinese and Australian businesses and will sign definitive purchase agreements for these transactions upon the close of the auction. Chinese and Australian businesses will continue to operate as usual and operations will not be affected by Chapter 11 cases.
The AHF and Gordon Brothers consortium would acquire nearly all of the North American assets. AHF plans to continue operating the Lancaster, Kankakee and Beech Creek sites, and the company will pursue an orderly liquidation of its Jackson and Stillwater sites on July 15, 2022. Pending the completion of the sale of its North American assets, which is scheduled for July. Effective February 22, 2022, Armstrong Flooring will continue to operate as usual in all North American geographies and remains committed to its customers and other stakeholders.
The proposed transactions are the result of a court-supervised auction that commenced on June 27, 2022 in which the AHF consortium and Gordon Brothers bid was the only binding bid received for substantially all of the northern assets. -Americans. The proposed transactions are subject to bankruptcy court approval, as well as regulatory approvals and customary closing conditions.
“We have worked hard to execute a sale that is effective and maximizes company value while keeping the best interests of our valued stakeholders at the forefront of everything we do. In light of the agreement we reached with AHF and Gordon Brothers, and the agreements we are about to sign with buyers from Chinese and North American companies after the completion of the auction, Armstrong Flooring is now one step closer to achieving this goal, ” said Michel Vermette, President and Chief Executive Officer. “We hoped to find a buyer for the entire activity and avoid any closure of our facilities; however, based on the options available to us, we believe this is the best way forward for our business. This reflects the support of our ABL lenders, creditors and other key stakeholders, and has been approved by our Board of Directors. Although no e cannot speak for the proposed buyers, we are encouraged that they see the company’s potential in the markets we serve and understand the role our people play in driving the business forward. »
The proposed North American sale transaction will be heard in a hearing in the United States Bankruptcy Court, currently scheduled for July 12, 2022, and the sale transactions for our Chinese and Australian businesses will also be heard at that time. there, provided the auction is closed on time.
The company is working alongside its DIP lenders to allow Armstrong Flooring to continue operations while buyers finalize all details and close sales transactions.
About Armstrong Flooring
Armstrong Flooring, Inc. is a global leader in the design and manufacture of innovative flooring solutions that inspire beauty anywhere. Headquartered in Lancaster, Pennsylvania, Armstrong Flooring continually builds on its 150-year-old resilient heritage by fulfilling its mission to create a stronger future for its customers through adaptive and inventive solutions. The company safely and responsibly operates seven manufacturing facilities around the world, striving to provide the highest levels of service, quality and innovation to ensure it remains as strong and vital as its legacy of 150 years. To learn more, visit www.armstrongflooring.com.
Forward-Looking Statements and Cautions
The information in this release and in our other public documents and comments contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding proposed asset sales and judicial approval, provide our future expectations or forecasts and can be identified by our use of words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, ” believe”, “outlook”, “target”, “predict”, “may”, “will”, “could”, “could”, “should”, “seek” and other words or expressions of similar meaning in connection with any discussion of future operational or financial performance. Forward-looking statements, by their nature, deal with uncertain matters and involve risks because they relate to events and depend on circumstances that may or may not occur in the future. Therefore, our actual results may differ materially from our expected results and from those expressed in our forward-looking statements. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those projected, anticipated or implied is included in our reports filed with the United States Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. We undertake no obligation to update forward-looking statements beyond what is required under applicable securities laws.