Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, December 4, 2020

Article Excerpt

ARMSTRONG WORLD INDUSTRIES INC., $80.82, symbol AWI on New York, is a leader in the design and manufacture of innovative commercial and residential ceiling, wall and suspension system. The company has 2,500 employees working from 14 facilities in the U.S. and Canada. On November 20, 2020, Armstrong announced it would acquire Arktura LLC, a Los Angeles-based maker of architectural specialty metal ceilings and felt walls, partitions and facades. Armstrong will pay $91 million in cash up front, another $24 million in deferred cash payments over five years, and an additional $6 million in Armstrong stock over five years. Arktura had 2019 revenue of $37 million. The transaction is expected to close by the end of 2020. The two companies plan to create Arkura Ventures LLC, which will incubate new products and solutions for engineering and construction customers. The acquisition is Armstrong’s third of 2020 and its eighth since spinning off Armstrong Flooring Inc. (symbol AFI on New York) in 2016. In the quarter ended September 30,…