At $24.3 million, AHF Products paid about $250,000 less for Armstrong Flooring’s plant and warehouse facilities than Armstrong Flooring had valued them in bankruptcy documents.
Lancaster County property records show the factory, at 1067 Dillerville Road, was sold for $6.4 million while its warehouse and 26-acre property at 1215 Loop Road went for $17.9 million. The factory in Lancaster city had been valued at $7.55 million and the warehouse property mostly in Manheim Township had been valued at $17 million in bankruptcy filings.
The properties were part of a $107 million sale of all of Armstrong Flooring’s North American assets to a consortium of AHF and Boston-based liquidator Gordon Brothers Commercial & Industrial. AHF has said it will continue to operate the factory and warehouse. AHF will also continue to operate plants in Beech Creek and Kankakee, Illinois.
AHF has plans to expand at the 39-acre Kankakee site, according to the Kankakee Daily Journal. The company wants to increase Kankakee’s workforce from 290 to more than 350 in the “not-too-distant future,” CEO Brian Carson told the newspaper.
AHF, the wood-flooring division of Armstrong Flooring that was spun off in 2018, is owned by Dallas-based private equity firm Paceline Equity Partners. Since the spin-off, AHF has made four acquisitions in the last four years, including Armstrong Flooring. It has branched out into luxury vinyl tile manufacturing.
A few weeks before AHF bought Armstrong Flooring, AHF sold five of its facilities for more than $60 million in a leaseback deal.
AHF sold factories and warehouses in Arkansas, Kentucky, Missouri and Tennessee to Broadstone Net Lease, based in Rochester, New York. The leaseback deal is for 25 years, with options to extend the lease twice for 10-year intervals. AHF’s payment is about $5 million annually, Broadstone reported to investors.
