Armstrong World Industries to record $31 million charge on change-in-control agreements
By APWednesday, September 9, 2009
Armstrong World Industries to take $31M charge
LANCASTER, Pa. — Armstrong World Industries Inc. said on Wednesday that it expects to take a $31 million accounting charge as it lives up to change-in-control agreements for employees and directors.
The change-in-control provisions were triggered by an investment by private equity group TPG, which agreed last month to take at least a 14 percent stake in Armstrong, which makes flooring and ceiling products.
On Aug. 28, an entity called Armor TPG bought 7 million common shares of Armstrong and “acquired an economic interest” in another 1 million shares, Armstrong said in the filing on Wednesday with the Securities and Exchange Commission.
Armstrong said the expense is because of accelerated vesting of stock compensation, and the charge will be recorded in the third quarter.
Armstrong shares rose 56 cents to close at $31.01 on Wednesday.
