Armstrong Ceiling Solutions’ new ownership confirmed following completion of acquisition by Aurelius Equity Opportunities
- Following the completion of the acquisition, Armstrong Ceiling Solutions in the divested markets is now in full ownership of Aurelius Equity Opportunities.
- The newly carved out business, acquired from Knauf and formerly part of Armstrong World Industries, has been established as a single standalone, profitable entity servicing 11 geographical markets.
- The leading manufacturer of suspended ceiling tiles and grids boasts two production facilities in the North East of England and three distribution centres located in the UK, Germany and Spain.
- Trading as Armstrong Ceiling Solutions and headquartered in Gateshead, UK, the well-established business has over 260 employees and is led by five executive board members.
- Aurelius Equity Opportunities will implement an extensive, multi-year capital investment programme designed to deliver substantial technical and specification upgrades to both the mineral fibre and grid production facilities.
31st March 2020 – Today marks the official closing date for the formal acquisition by Aurelius Equity Opportunities (“Aurelius”) of the Armstrong ceiling tiles and grids businesses in Austria, Estonia, Germany, Ireland, Italy, Latvia, Lithuania, Portugal, Spain, Turkey and the UK. From this date, the divested business, led by five executive board members and trading as Armstrong Ceiling Solutions, will be fully independent and in the full ownership of Aurelius.
In August 2019, Aurelius Equity Opportunities, a pan-European investment company focused on creating value through the operational improvement of companies with development potential, reached an agreement to purchase the business. The business trades as Armstrong Ceiling Solutions and comprises two production facilities in the North East of England and three distribution centres located in the UK, Germany and Spain, as well as sales teams responsible for selling mineral fibre tiles and grid within the divested regions.
The transaction followed Knauf’s agreement to acquire Armstrong World Industries’ (“AWI”) EMEA ceiling business (“Armstrong EMEA”) and the retrospective condition required of Knauf by the European Commission in order to safeguard market competition for the production and supply of modular suspended ceiling mineral fibre tiles and grid in numerous territories. For the transaction to close, Knauf were obligated to separate the mineral fibre and grid businesses in certain specified territories to create a new independent group which would then be sold to an approved third party acquirer.
Fritz Seemann, Executive Board Member of Aurelius, commented: “We are delighted that this acquisition has now been completed and we welcome Armstrong Ceiling Solutions into our portfolio. The completion of this transaction is doubly significant in that it demonstrates Aurelius’ capability to transact in highly challenging market conditions as well as expertise when it comes to executing complex, cross-border carve-outs. We look forward to supporting Armstrong Ceiling Solutions and its management team during the company’s next stage of development, leveraging our extensive experience working with businesses in the manufacturing sector and our operational expertise to support the company’s continued growth.”
Now formally owned by Aurelius, 2020 marks an exciting new chapter for Armstrong Ceiling Solutions, a robust, standalone and profitable entity with over 260 employees. The company is headquartered in Gateshead, UK and led by a highly experienced and dedicated management team.
The completion of the transaction makes way for the implementation of an extensive, multi-year capital investment programme designed to deliver substantial technical and specification upgrades to both the mineral fibre and grid production sites enabling the two facilities to produce, in-house, all tiles and grid products that are sold by the business across the geographic markets it serves.
Aurelius will work closely with the management team to take advantage of the growth opportunities available globally and across all non-residential construction sectors. Investment into new product development will mean an extended and broader product offering which will enhance and complement the current core product range and meet the market needs.
To encompass all the recent changes and reflect the business’ new identity and values a new brand will be launched which will take Armstrong Ceiling Solutions and their customers on an exciting journey of redefinement.
Christophe Lloret Linares, Managing Director at Armstrong Ceiling Solutions, commented: “As a key market player, Armstrong Ceiling Solutions has found with Aurelius the perfect shareholder to build the foundation of a new era which starts today with the closing of the transaction. Aurelius’ experience alongside Armstrong Ceiling Solutions’ expertise will ensure the success of this new stand-alone business. Our employees are really excited to commence the cooperation with Aurelius, convinced that our customers and our companies will benefit from the significant investment plans being implemented, our new strategic developments, and our profitable growth.”
