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A Pennsylvania manufacturer of walls, ceilings, and building suspension systems reached an agreement to acquire a Los Angeles-based rival, company officials announced.
Armstrong World Industries said the addition of Arktura would help the company reach “a whole new level of design excellence.” Arktura designs and fabricates ceilings, walls, partitions, and facades, particularly using specialty metal and felt.
“We are excited about the possibilities ahead for our teams to collaborate and create innovative solutions that make a positive difference where we live, work, learn, heal, and play,” AWI CEO Vic Grizzle said in the announcement.
Under the agreement, Arktura would become a wholly owned subsidiary of AWI but retain its name, brand, organizational structure, and staff. Arktura would also continue to sell through its current, independent sales network.
Once the transaction is finalized, the companies also plan to launch an incubator to advance new technologies, materials, and products beyond their current core businesses. AWI would have majority ownership and control of the new venture — known as Arktura Ventures LLC — but it would be co-managed and co-led by representatives from each company.
The companies said the deal should close before the end of the year. AWI plans to fund the purchase with revolving credit and available cash; additional financial details were not disclosed.
Image Credit: Armstrong World Industries.
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