August 14 2019 @ 10:30 by Steven Hugill
A suspended ceiling tiles and grids manufacturer says it is entering the “beginning of an exciting period of investment and growth” with renewed confidence following a takeover.
Team Valley-based Armstrong has been bought by Aurelius from Knauf International.
Bosses say the deal will safeguard Armstrong’s future, with a multi-year investment programme planned to upgrade production facilities at the company’s two North East sites.
Armstrong, which has estimated combined 2019 revenues of £75 million, operates across 11 European countries, with its mineral fibre tiles and grids used for ceilings in offices, schools and hospitals.
Aurelius says the deal will see Armstrong established as a standalone entity, with bosses working alongside its management team to identify fresh growth opportunities across all non-residential construction sectors.
Christophe Lloret Linares, managing director, said: “We look forward to working with the team at Aurelius who will provide the support we need as we establish ourselves as a standalone business and enter the beginning of an exciting period of investment and growth.
“This is a highly complex carve out, which is well suited to Aurelius’ expertise and track record.”
Fritz Seemann, a member of Aurelius’ executive board, added: “This is an exciting company, which produces high-quality products that are well regarded and widely used across its 11 markets.
“Our status as a pan-European investor positions us well to offer the new standalone business the support it needs across the multiple countries in which it operates.
“Similarly, our extensive experience working with businesses in the manufacturing space makes Aurelius a fantastic partner for the company’s next stage of development.
“We look forward to working with the management team to share this expertise and establish this company as an independent entity, ready to take advantage of the opportunities that exist within its marketplace.”
The deal follows Knauf’s agreement to buy Armstrong World Industries Inc’s EMEA and Pacific Rim business in 2017.
In order for that deal to be completed, Knauf was required by the European Commission to sell the businesses Aurelius has acquired.
The financial terms of the takeover have not been disclosed and completion remains subject to the approval of the European Commission among other relevant competition approvals.