A recent announcement made by Armstrong flooring is that they are all set to purchase Mannington Mills by the end of June 2017. Armstrong stated that the purchase will cost them a whopping $36 million dollars. Armstrong also states that depending on the sales and production numbers after the transaction that Mannington could expect to see payments all the way up into 2020. This of course is all contingent on how the business does after the sale.
When speaking with Armstrong, they reported that doing so will hopefully make them more productive. They will combine the two companies and continue to use their current network such as plants and distribution plants. They Mannington place will not be making a new product just adding to the existing one of Armstrong, further strengthening the business.
Armstrong’s decision to join Mannington Mills should be finalized by June 30th.
The trend in vinyl tiles are seen widely in many familiar markets. These markets include; educational facilities, industrial and mass market chains. The flooring has even seen its way into hospitals and nursing facilities. These floors are designed for heavy traffic areas and the business's decision to put these into use in their facilities has proven to withstand the test of time and money. But why the decision to buy out Mannington?
Armstrong had been seeing several losses over the past few years. One being when they attempted to streamline with another company and took a major hit after that buy out failed. They had also tried to combine many aspects of their business which proved to be fruitless as they continued to suffer many losses. In 2016 Armstrong seen a 6.8 percent loss. This loss brought them from $284 million all the way down to $265 million. They experienced a little bit of a deeper loss in 2016 as their tax expenses came in at $500,000 but showed a benefit of nearly $2 million dollars.
Previous efforts to streamline the business resulted in a major drop in sales. Combining the residential and commercial sales with the company, they predict will save nearly $7 million dollars. However, with this streamlining effort there will be an estimated 40 job lost.
In 2016 Armstrong shares stood at a 28 cents a share. They watched as it dropped to a stunning 3 cents a share. This drastic drop showed a loss of nearly $800 thousand dollars for Armstrong. They hope that with this merger they will be able to bring their sales and share cost back up and prevent any further loss.
The decision to buy out Mannington to help streamline their business came only after they had discovered they had a larger net loss that resulted in failed sales strategies therefore weakening their business and leaving them open to this deficit.
Armstrong is aware of the market out there on vinyl flooring and they are aware of the trending going on in the market and how it affects their business. They hope to be able to keep the flooring at prices their customers can still enjoy.
Hardwood Flooring - Tile Flooring - Vinyl Flooring
When speaking with Armstrong, they reported that doing so will hopefully make them more productive. They will combine the two companies and continue to use their current network such as plants and distribution plants. They Mannington place will not be making a new product just adding to the existing one of Armstrong, further strengthening the business.
Armstrong’s decision to join Mannington Mills should be finalized by June 30th.
The trend in vinyl tiles are seen widely in many familiar markets. These markets include; educational facilities, industrial and mass market chains. The flooring has even seen its way into hospitals and nursing facilities. These floors are designed for heavy traffic areas and the business's decision to put these into use in their facilities has proven to withstand the test of time and money. But why the decision to buy out Mannington?
Armstrong had been seeing several losses over the past few years. One being when they attempted to streamline with another company and took a major hit after that buy out failed. They had also tried to combine many aspects of their business which proved to be fruitless as they continued to suffer many losses. In 2016 Armstrong seen a 6.8 percent loss. This loss brought them from $284 million all the way down to $265 million. They experienced a little bit of a deeper loss in 2016 as their tax expenses came in at $500,000 but showed a benefit of nearly $2 million dollars.
Previous efforts to streamline the business resulted in a major drop in sales. Combining the residential and commercial sales with the company, they predict will save nearly $7 million dollars. However, with this streamlining effort there will be an estimated 40 job lost.
In 2016 Armstrong shares stood at a 28 cents a share. They watched as it dropped to a stunning 3 cents a share. This drastic drop showed a loss of nearly $800 thousand dollars for Armstrong. They hope that with this merger they will be able to bring their sales and share cost back up and prevent any further loss.
The decision to buy out Mannington to help streamline their business came only after they had discovered they had a larger net loss that resulted in failed sales strategies therefore weakening their business and leaving them open to this deficit.
Armstrong is aware of the market out there on vinyl flooring and they are aware of the trending going on in the market and how it affects their business. They hope to be able to keep the flooring at prices their customers can still enjoy.
Hardwood Flooring - Tile Flooring - Vinyl Flooring
