West Hempfield Township-based AHF Products, a hardwood flooring manufacturer, has announced it has closed on the deal to purchase Armstrong Flooring.
The deal includes the rights to license the Armstrong Flooring brand name as well as the purchase of three U.S. manufacturing facilities in Lancaster County, and Beech Creek, Clinton County and in Kankakee, Illinois.
Previously, AHF Products and Boston-based investment firm, Gordon Brothers Commercial & Industrial had received approval from the United State Bankruptcy Court for the District of Delaware to purchase the North American assets of Armstrong Flooring Inc. for $107 million.
With this purchase, AHF now operates 11 manufacturing facilities, ten in the U.S. and one in Cambodia, and four distribution facilities.
“AHF is primed to benefit from a strong long-term outlook in both residential repair and remodel spend and new residential housing construction, and the benefits afforded by our strong domestic manufacturing capabilities,” Brian Carson, CEO and president of AHF Products said in a news release.
AHF offers 14 brands of flooring. AHF Products previously acquired LM Flooring in 2019, followed by Parterre Flooring and American OEM in 2021.
Armstrong Flooring, a 150-year-old company, had previously filed for Chapter 11 bankruptcy.
A court-supervised auction began on June 27, and the bid by the AHF and Gordon Brothers consortium was the sole binding bid received for substantially all of the company’s North American assets.
The sale is expected to save hundreds of jobs in the Lancaster area. Armstrong Flooring had filed a WARN (Worker Adjustment and Retraining Notification) notice in May with the Pennsylvania Department of Labor & Industry informing the state that it would have to lay off 606 people in Lancaster County if it was unable to sell the business.
Armstrong Flooring has operations in Lancaster and an office in East Hempfield Township.
Two of Armstrong Flooring’s facilities in the United States weren’t part of the purchase and closed. The two facilities were located in Jackson, Mississippi and Stillwater, Oklahoma.
Armstrong’s facilities in Hong Kong and Australia were purchased at auction separately.
Giant Group will acquire the equity interests in the company’s Hong Kong holding company subsidiary, including all associated operations, for $59 million; and Cowes Bay will acquire substantially all of the company’s Australian assets for $31 million plus assumption of specified liabilities.
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