Armstrong Exits European Flooring Business

Lancaster, PA, Dec. 11, 2014--Armstrong World Industries said it has decided to exit its European flooring business and cease further funding of its DLW subsidiary, effective immediately.

Consequently, DLW management filed for insolvency in Germany.

"Our difficult, but necessary, decision to exit the European flooring business and discontinue funding our DLW subsidiary in Germany was the culmination of a comprehensive evaluation of strategic alternatives following years of disappointing results, multiple restructuring initiatives and significant financial investments," said Armstrong CEO Matthew J. Espe.

DLW management concluded that its operations could not be financed and sustained without funding from its Armstrong parent and, as a result, filed for insolvency under applicable German law.

"These results and our ultimate decision, however, in no way reflect the dedication, effort and commitment of DLW employees over the years, for which we remain grateful," said Espe.

Armstrong expects all operations at the two DLW manufacturing plants in Germany, as well as at the DLW administrative offices across Europe, to continue in the normal course for the near term.

A preliminary insolvency administrator in Germany will be appointed by the local court.

Armstrong will classify the results of the European flooring business as discontinued operations starting in the fourth quarter.

Armstrong acquired DLW in 1998 as a catalyst for the development of its European flooring business.