Armstrong World Industries to split into two publicly traded companies in tax-free spin-off

MarketsAssociated Press

Armstrong World Industries is spinning off its flooring business, creating two publicly traded companies with the other focused on ceilings.

The tax-free spin-off to company shareholders is expected to be complete in the first quarter of 2016.

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"We are committed to taking decisive actions to deliver shareholder value, and separating our businesses at this time is the best way to accomplish that goal," CEO Matthew Espe said in a printed statement. The separation should not cause any disruptions for customers, distributors and suppliers, Espe said.

Armstrong World Industries will include the building products division, with 22 manufacturing plants in eight countries. Armstrong Building Products CEO Vic Grizzle will serve as CEO of Armstrong World Industries.

Armstrong Flooring will run 17 manufacturing plants in three countries. Armstrong Flooring Products CEO Don Maier will be CEO of Armstrong Flooring.

Both businesses will remain headquartered in Lancaster, Pennsylvania.

The separation still needs final approval from the company board.

Armstrong World Industries Inc. also reported its fourth-quarter financial results Monday, posting an adjusted profit of 38 cents per share on revenue of $587.3 million. Analysts surveyed by FactSet predicted a profit of 26 cents per share on revenue of $623.9 million.