BEVERLY — Armstrong Flooring officials announced Thursday the wood flooring division of the company has been sold to a private equity firm.

“Today, Armstrong Flooring announced a definitive agreement to sell its wood flooring business to an affiliate of American Industrial Partners (AIP), a private equity firm,” a Thursday press release from Armstrong Flooring officials stated. “AIP plans to operate the wood flooring business as a separate company and to continue to operate our six U.S. wood floor manufacturing plants with their current staff, including the plant in Beverly.”

“Armstrong Flooring, Inc., will become a resilient-focused flooring company, operating six U.S. resilient manufacturing plants, as well as plants in China and Australia,” the release continues.

Robbie Morris, Randolph County Development Authority executive director, said he believes this is a positive development for the Beverly Plant as the purchasing company is “financially strong” and has plans for the industry.

“I’ve been in contact with company officials. It is a positive thing for the company and it’s a positive thing for the Beverly plant,” Morris said. “The company that bought the wood flooring portion of Armstrong Flooring is a very financially strong company that will put the resources into making Armstrong a better and stronger company. They have a lot of positive plans for the company overall and all of those positive plans include Beverly, so it’s a good thing.”

He added there are no plans to reduce staffing at the Beverly plant.

Morris said this transition will not affect the ongoing plant expansion project and the planned entrance expansion.

The purchase price of the sale is $100 million, subject to customary adjustments for working capital, debt and other matters, the release states. The transaction is valued at approximately 7.2 times the Wood Flooring segment’s trailing twelve-month Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization).

As of Oct. 31, Armstrong Flooring’s Wood Flooring segment comprised six U.S. manufacturing facilities primarily serving the North American region and approximately 1,700 employees.

The transaction, which is subject to customary closing conditions, is expected to be completed at the end of the fourth quarter of 2018. The net proceeds to the company from the transaction after purchase price adjustments are non-taxable and expected to be $85 to $90 million, which should increase the company’s flexibility to further invest in its growth strategies and other value-enhancing opportunities, according to the release.

Upon closing of the sale, Armstrong Flooring will intensify its focus on the fastest-growing parts of the flooring industry, including Luxury Vinyl Tile (“LVT”) and rigid core, as well as its wide range of resilient products including Vinyl Composition Tile and resilient sheet, officials said.

AIP will gain Armstrong Flooring’s high-quality wood flooring product portfolio and existing network of wood floor manufacturing facilities, staffed by an experienced wood flooring team. AIP will own the Bruce brand and all other wood flooring segment brands. To ensure a seamless transition for customers, AIP will have full access to the Armstrong Flooring brand for the sale of wood products for two years after closing, the release states.

“Today’s announcement demonstrates our commitment to maximizing shareholder value and focusing our portfolio on profitable growth strategies,” Don Maier, Armstrong Flooring CEO, said in the release. “The wood flooring industry has been impacted by changing market dynamics and now is the right time to deepen our focus on LVT and other resilient flooring categories, where we are confident fundamentals remain strong for future growth.”

Rick Hoffman, a partner at AIP, said, “Don and I believe this strategic decision empowers both the resilient and wood flooring businesses to better realize their core strengths and pursue strategies for growth, product innovation and quality, and exceptional service to customer. Our companies look forward to working closely with each other to ensure a seamless transition for employees, customers and suppliers.”