March 27, 2024

Last Friday, Armstrong Flooring (NYSE:AFI) announced that it may potentially explore a sale to another company and other “strategic alternatives.” Today, shares of AFI stock are trading higher by more than 19% after the company confirmed that it had put itself up for sale.

Source: Shutterstock

Armstrong Flooring operates as a company that focuses on flooring and flooring-related products. The Lancaster-based company was founded in 1860 and became a publicly traded entity in 2016. However, AFI stock had anything but a pleasant 2021. The stock dropped by more than 45% over the year amid “supply chain disruptions and inflationary pressures.” To address current company disruptions, CEO and President Michel Vermette remarked, “We curtailed our capital expenditures and planned SG&A spend in the third quarter and have taken actions to continue to reduce this spend in the near term.”

Current macroeconomic disruptions may have factored into the decision for Armstrong Flooring putting itself up for sale. Investors will want to know more about the implications of such a sale, so let’s dive right in.

AFI Stock: What to Know About a Potential Sale

  1. Armstrong Flooring boasts seven manufacturing facilities in the U.S., China and Australia. Additionally, the company employs over 1,800 people.
  2. The flooring company announced on the last day of 2021 that it had amended its asset-based loan (ABL) credit and term loan facilities. Armstrong’s current term loaner will…

Read more…

Leave a Reply

Your email address will not be published. Required fields are marked *