Armstrong World Industries Acquires A. Zahner Company

By Tamara Parker • Wednesday, December 04 15:19 • Permanent Link

Armstrong World Industries, Inc. (NYSE: AWI) has recently announced the acquisition of A. Zahner Company (Zahner), a leader in the design, engineering, and fabrication of exterior architectural metal solutions. This acquisition represents a significant expansion of Armstrong's capabilities, particularly in the highly specifiable exterior architectural metal category. Zahner, based in Kansas City, MO, is renowned for its expertise in metal design and fabrication for large and complex projects, with a projected revenue of approximately $42 million in 2024.

This acquisition is part of Armstrong's broader strategy to expand its portfolio of products and solutions. With the addition of Zahner, Armstrong has completed 12 architectural specialties acquisitions since 2016, significantly diversifying its offerings to include a range of substrate materials for interior and exterior applications, such as metal, wood, felt, and architectural resin.

The acquisition of Zahner directly complements Armstrong's existing exterior architectural metal capabilities, building on the foundation established by the acquisition of Bok Modern, LLC in 2023. This strategic move allows Armstrong to participate in more spaces within the construction and renovation of a building with highly specified products and innovative solutions, driving the company's growth strategy.

Armstrong funded the acquisition with existing cash and its revolving credit facility, and the district capital partners acted as its buy-side adviser.

With $1.3 billion in revenue in 2023 and a manufacturing network of 21 facilities, including Zahner, Armstrong continues to be a leader in the design and manufacture of innovative ceiling and wall solutions in the Americas, with a focus on aesthetics, acoustics, wellbeing, and sustainability.

The acquisition of Zahner represents a significant milestone in Armstrong's expansion and diversification strategy, further strengthening its position as a leader in the architectural specialties market. The market has reacted to these announcements by moving the company's shares 0.5% to a price of $159.95. For more information, read the company's full 8-K submission here.

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