Armstrong’s Board of Directors unanimously approved the plan. The spinoff is expected to be completed in the first quarter of 2016.
Armstrong executives said their hope is that the flooring and ceilings businesses will create two strong companies that are leaders in their respective markets and that will benefit from increased strategic focus, streamlined operating structures and improved capital allocation.
“We expect both businesses to improve their industry leading positions and maximize their strategic opportunities,” said Matthew Espe, president and CEO of Armstrong. “There is little existing overlap between the businesses, and we expect the separation to create minimal incremental operating expenses and result in no disruption to our customers, distributors and suppliers.”
Both businesses will remain headquartered in Lancaster.