GCP Announces Organization Changes and Restructuring to Improve Performance
31 Março 2021 - 7:00AM
GCP Applied Technologies Inc. (NYSE:GCP) (“GCP” or “the Company”),
a leading construction chemicals and building products company,
today announced plans to open its new corporate headquarters
location in the Atlanta, Georgia metro area by the fourth quarter
of fiscal year 2021. The relocation follows the $122.5 million sale
of its corporate headquarters in Cambridge, Massachusetts in July
2020. GCP’s research and development (“R&D”) group will remain
in the Greater Boston area.
GCP will transition to a simpler organizational model, which
will reorganize the business regionally to better focus on
customers. The Company will also consolidate some offices and
manufacturing locations in order to achieve production efficiencies
while also improving profitability and driving shareholder
value.
“On behalf of the Board and management team, we are excited to
open GCP’s new global headquarters in the Atlanta area – the main
business center in the Southeast US region where Fortune 500
companies and innovative local startups are choosing to locate,”
said Mr. Bates. “We worked with a third party to review more than
six potential locations and we are confident that the Atlanta metro
area will be the best possible home for our headquarters. The city
has a diverse professional talent pool, strong market
characteristics and its affordability makes it attractive to both
employees and employers. We also believe our new regional structure
will better service our customers, accelerate growth and strengthen
our financial performance.” The relocation is
anticipated to qualify for the Quality Jobs Tax Credit in
Georgia.
GCP expects to achieve pre-tax cost structure savings of
approximately $13 million to $15 million; mostly in general,
administrative, and overhead expenses. The majority of the
cost saving benefits are expected to be realized in 2022 once GCP’s
global corporate headquarters, the new R&D facility, and the
new organizational model changes have been implemented by year end
2021. The expected pre-tax cash costs from the actions, excluding
capital expenditures, are approximately $19 million including
approximately $13 million to $15 million of employee related and
severance costs and approximately $5M million of costs representing
office and facility consolidation, and other associated costs. An
additional $6 million of capital is required for the new R&D
facility, corporate headquarters, and upgrades to the information
technology infrastructure. GCP expects an additional $8 million to
$9 million of asset write off costs related to the consolidation of
offices and manufacturing facilities.
“We are pleased with the progress we are making in the areas
related to building organizational capability, stabilizing revenues
and driving profitable growth as our Q1 2021 volumes are ahead of
expectations with strong demand for our products in March,” Mr.
Bates said.
About GCP Applied Technologies
GCP is a leading global provider of construction products
technologies that include additives for cement and concrete, the
VERIFI® in-transit concrete management system, high-performance
waterproofing products, and specialty systems. GCP products have
been used to build some of the world’s most renowned structures.
More information is available at www.gcpat.com.
Forward-Looking Statements
This announcement contains “forward-looking statements,” that
is, information related to future, not past, events. Such
statements generally include the words “believes,” “plans,”
“intends,” “targets,” “will,” “expects,” “estimates”, “suggests,”
“anticipates,” “outlook,” “continues,” or similar expressions.
Forward-looking statements include, without limitation, statements
about expected: financial positions; results of operations; cash
flows; financing plans; business strategy; operating plans;
strategic alternatives; capital and other expenditures; competitive
positions; growth opportunities; benefits from new technology; and
cost reduction initiatives. GCP is subject to various risks and
uncertainties that could cause its actual results to differ
materially from those contained in forward-looking statements,
including, without limitation, risks related to: the cyclical and
seasonal nature of the industries that GCP serves; foreign
operations, especially in emerging regions; changes in currency
exchange rates; the cost and availability of raw materials and
energy; new product introductions and other growth initiatives;
acquisitions and divestitures of assets; GCP’s outstanding
indebtedness, including debt covenants and interest rate exposure;
GCP’s funded and unfunded pension obligations; warranty and product
liability claims; legal proceedings; the inability to establish or
maintain certain business relationships, including with customers
and suppliers; employee retention; and compliance with
environmental laws. These and other factors are identified and
described in more detail in GCP’s Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q, which have been filed with the U.S.
Securities and Exchange Commission and are available online at
www.sec.gov. Readers are cautioned not to place undue reliance on
GCP’s projections and other forward-looking statements, which speak
only as the date thereof. GCP undertakes no obligation to publicly
release any revision to its projections and other forward-looking
statements contained in this announcement, or to update them to
reflect events or circumstances occurring after the date of this
announcement.
Contact
Investor RelationsBetsy Cowell+1
617.498.4568investors@gcpat.com
Media: Emily Claffey / TJ Tatum / TJ
WhiteGCP-SVC@SARDVERB.com
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