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Freedonia Analyst Comments on Armstrong World Industries' Purchase of Steel Ceilings

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Freedonia Analyst Comments on Armstrong World Industries' Purchase of Steel Ceilings

PR Newswire

CLEVELAND, Aug. 29, 2018 /PRNewswire/ -- On August 16th, Armstrong World Industries acquired Steel Ceilings, an Ohio-based manufacturer of standard and custom aluminum and stainless metal ceilings.

Freedonia Group logo (PRNewsFoto/The Freedonia Group)

"Armstrong is by far the largest supplier of ceiling products in the US," says Matt Hurley, an industry analyst at the Freedonia Group. "This purchase was made as part of the company's strategy of maintaining its industry leadership position through acquisitions."

The transaction also demonstrates Armstrong's commitment to expanding its presence in the fast growing specialty ceiling products market. Earlier this year, Armstrong purchased Plasterform, a Canadian manufacturer of custom cast ceilings, columns, facades, moldings, and walls.

"Both acquisitions also support Armstrong's strategy of focusing on the profitable US and Canadian ceiling markets," says Hurley.

In late 2017, the company announced plans to sell its ceiling operations in Africa, Europe, the Middle East, and the Pacific Rim to the German firm Knauf. The transaction was initially expected to close in mid-2018, but is now expected to be completed by the end of the year because of delays in receiving needed clearances from the European Union, and Bosnia and Herzegovina.

Knauf is not currently active in the US ceilings market, but it will become a formidable competitor to Armstrong when Knauf completes its earlier announced acquisition of USG, the second largest ceiling products supplier in the US, in a deal expected to close in early 2019.

CertainTeed, another important ceiling supplier in the US, has also been working to boost the size of its operations through acquisitions. Earlier this month, the company purchased Hunter Douglas's North American ceilings business, whose product portfolio includes specialty metal ceilings, felt ceiling and wall systems, and large format acoustical panels.

According to Hurley, "The recent flurry of acquisition activity centered on the US demonstrates the growth opportunities that exist in the country's large ceilings market." Information on the current size and expected growth of the US ceiling products market is available in the Freedonia study, Ceilings Market in the US.

https://www.freedoniagroup.com/Ceilings.html

About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.

Press Contact:
Corinne Gangloff
+1 440.684.9600
cgangloff@freedoniagroup.com

 

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SOURCE The Freedonia Group

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