Armstrong Flooring faces a new deadline to locate a buyer | Community Business

Armstrong Flooring faces a new deadline to locate a buyer | Community Business

Armstrong Flooring Inc. is examining delivers from “several opportunity buyers” as it acquired an extension from lenders to finalize a sale, in accordance to documents submitted with the Securities and Trade Commission Thursday.

The East Lampeter Township-headquartered business will have to enter into a definitive binding purchase agreement, merger agreement or other similar agreement by no later on than May well 2. The offer have to shut on or right before June 15, according to the amended personal loan settlement. Beforehand, the deadline to close was May 15. 

Armstrong employs about 500 domestically.  

The 160-calendar year-previous company’s capacity to keep on is dependent on completing a sale or refinance no later than June 30, it has said in a March 9 report submitted with the Securities and Exchange Commission.

The business sought and gained an extension from its loan companies so it could critique likely offers, in accordance to an amendment to its personal loan arrangement. 

Armstrong has hired investment financial institution Houlihan Lokey Cash Inc. to help with a procedure for the sale of the business and with the thought of other strategic choices. 

Armstrong did not disclose its potential suitors.

“The enterprise obtained private, non-binding expressions of interest from numerous get-togethers in connection with the sale process,” Armstrong wrote in its most latest discover to the SEC this 7 days. “After thorough review and thing to consider, the board of directors of the enterprise has instructed the company’s administration and advisors to go after implementation of those expressions of curiosity which the board believes are most very likely to maximize the price to be recognized by the company’s stakeholders, subject to further more negotiation and documentation.”

In its March 9 SEC submitting,  Armstrong stated it would not be earning any even more disclosures or keeping phone calls with buyers right up until the sale or other “strategic alternative” is concluded. It did not difficulty an earnings launch. The company also explained it would not respond to any inquiries concerning its economic or operational efficiency, the process of the sale or other strategic possibilities.

In January, the enterprise declared it experienced amended its time period personal loan with private credit investment decision administration agency Pathlight Capital LP to provide an extra $35 million to give it “financial flexibility to pursue its operational and strategic ambitions.” 

The company expressed question it could keep on previous June 30 because of to continuing source chain disruptions and ongoing inflationary pressures connected to transportation, labor and uncooked resources which are predicted to keep on by way of 2022, the company said in the March 9 SEC filing.

For the year finished Dec. 31, Armstrong Flooring documented a internet decline of $53 million, regardless of a 11% boost in product sales profits. As of Dec. 31, the enterprise had an accumulated deficit of $356.2 million and a full credit card debt of $111.3 million, with $110 million owing June.

Armstrong has struggled with four straight decades of losses considering the fact that it shed its hardwood flooring division in December 2018.

Last year, it sold its Los Angeles-space plant for approximately $77 million and moved its headquarters and technological centre, an additional value-conserving go. It relocated its headquarters and technical middle to Greenfield in East Lampeter Township. Armstrong Flooring was spun off from Armstrong Environment Industries in 2016, a transfer that left Armstrong Industries with the considerably much more worthwhile ceilings enterprise.

Armstrong reported it had 1,568 employees globally as of Dec. 31, with 1,172 in the United States. In December 2020, it had around 1,500 personnel, like 500 in Lancaster. The remainder are in Canada, Australia, China, the Philippines, Singapore and Vietnam. 

Armstrong Flooring debuted with all around 3,700 staff, which include 750 involving its Dillerville Street floor plant and its previous Columbia Avenue headquarters.

Armstrong Flooring operates 7 manufacturing plants in 3 nations. Two plants are in  Pennsylvania, a single in Lancaster town and a person in Beech Creek Township, Clinton County. There are plants in Illinois, Mississippi, Oklahoma and a person plant each and every in China and Australia.