BIETIGHEIM, Germany -- Armstrong DLW AG, a subsidiary of U.S.-based Armstrong Holdings Inc., has entered into talks with CVC Capital Partners on the possible sale of the European components of its Textiles and Sports Flooring division, which operates under the brand name Desso. The talks are expected to last several months.

Desso, with approximately 1,300 employees, manufactures commercial carpet and artificial sports flooring in The Netherlands, Germany and Belgium. Based in Oss, The Netherlands, the division had annual sales of approximately $313 million in 1999.

"An acquisition by CVC would enable Desso to receive the investment it needs to grow and better serve its customers and employees," said Gerard Glenn, Armstrong DLW AG president and CEO. "Armstrong's European flooring business is focused on resilient products and, indeed, we would use the proceeds from a sale to grow this core business for us in Europe."

Although the company is currently assessing the accounting for the potential transaction, it is expected that there could be a net loss on disposal of approximately $30-35 million before any tax benefit. CVC Capital Partners, based in London, is a European private equity firm that has interests in more than 200 companies throughout Europe with a total value of $30 billion.