Sector News

Grace to complete spin of construction products next month

January 13, 2016
Chemical Value Chain

W. R. Grace says the previously announced spin off GCP Applied Technologies (GCP), its construction products and packaging sealants and coatings businesses, will be completed on 3 February.

Greg Poling, currently Grace COO, has been designated GCP president and CEO.

Grace shareholders will receive one share of GCP Applied Technologies common stock for every one share of Grace common stock held as of the close of business on 27 January, the record date for the distribution. The distribution of GCP Applied Technologies common stock is expected to occur on 3 February. Grace says that GCP shares are expected to begin “when-issued” trading on 26 January and that common shares are expected to begin “regular-way” trading on 4 February on the New York Stock Exchange under the ticker symbol “GCP”.

GCP had 2014 sales of $1.5 billion and net income of $134.3 million. The construction chemicals segment, including concrete admixtures and cement additives, posted 2014 revenue of $726 million and adjusted Ebitda of 12.5%. The building materials segment. sheet and liquid membrane building envelope products as well as specialized cementitious and chemical grouts, posted 2014 revenue of $379.3 million and adjusted Ebitda of 22.2$. Darex packaging technologies, a maker of can sealants and closures as well as packaging coatings, had 2014 revenues of $374.8 million and adjusted Ebitda margin of 21.2%.

“As independent companies, we believe Grace and GCP will benefit from enhanced strategic, operating, financial, and investment flexibility and are poised to generate significant value for our shareholders,” says Fred Festa, Grace chairman and CEO.

Grace says the GCP is expected to sell $525 million in senior bonds due 2023 and enter a new credit facility that includes a $275-million term loan. Debt proceeds will be used fund a $750 million cash distribution to Grace upon spin off.

By Robert Westervelt

Source: Chemical Week

Related News

May 16, 2021

Holistically sustainable alternative for plastics and bioplastics

Chemical Value Chain

The Hamburg-based, female-founded startup traceless materials has developed a holistically sustainable alternative for plastics and bioplastics that is fully compostable in nature, contributing to solve the global plastic pollution.

May 16, 2021

Stora Enso and Pulpex pioneer fiber-based bottle industrialization for competitive prices

Chemical Value Chain

Sohrab Kazemahvazi, senior vice president and head of Stora Enso’s formed fiber business, tells PackagingInsights the partnership aims to create competitive pricing and volumes for fiber-based bottles.

May 16, 2021

Alfa Laval partners with EasyMining to develop new waste-utilization processes

Chemical Value Chain

Alfa Laval’s expertise in mechanical and thermal separation will ensure waste minimization, zero liquid discharge and chemical reuse within EasyMining’s processes.

Send this to a friend