WAVE to Sell European and Pacific Rim Businesses
November 20 2017 - 8:26AM
Worthington Industries, Inc. (NYSE:WOR) announced today that its
Worthington Armstrong Venture, WAVE, a global leader in ceiling
suspension systems solutions, has agreed to sell its business and
operations in Europe, Middle East, Africa and Asia, to Knauf Group,
a family-owned manufacturer of building materials headquartered in
Germany. It is part of a broader transaction with Armstrong
World Industries (NYSE:AWI) the other partner in the WAVE joint
venture.
The agreement includes the sale of WAVE businesses
and operations in the United Kingdom, France, China and
India. The WAVE and AWI businesses and operations in the
Americas are not part of this agreement. Worthington expects
to realize approximately $45 million for its 50% share of the WAVE
operations being sold. Once completed, the sale is expected to
reduce Worthington’s share of equity income from WAVE by
approximately $5 million per year. The transaction is subject
to regulatory approvals and other customary closing conditions and
is anticipated to close in mid-2018.
“The returns from the international business at
WAVE have always been challenging, and the sale will allow WAVE
leadership to focus on expanding market leading business in the
U.S. where growth opportunities and returns are more attractive,”
said John McConnell, Chairman and CEO of Worthington
Industries.
“The strength of our operations has been in the
Americas and we believe that geographic market has tremendous
potential,” said Rose Mary Clyburn, WAVE President. “This
transaction will allow us to focus our resources on our Americas
total ceiling solutions and accelerate our strategy.”
Please refer to AWI’s news release for more detail
at ir.armstrongceilings.com
About WAVE
WAVE is the worldwide leader in the production of
suspended ceiling system solutions sold under the Armstrong brand
name. A joint venture between AWI and Worthington for 25
years, WAVE combines the culture and strengths of both
partners. WAVE employs over 600 people and operates nine
manufacturing locations in five countries. AWI is a global
leader in the design and manufacture of innovative commercial and
residential ceiling, wall and suspension system solutions with over
3,700 employees and fiscal 2016 revenues from ceiling operations in
excess of $1.2 billion.
About Worthington
Industries
Worthington Industries is a leading global
diversified metals manufacturing company with 2017 fiscal year
sales of $3.0 billion. Headquartered in Columbus, Ohio,
Worthington is North America's premier value-added steel processor
providing customers with wide ranging capabilities, products and
services for a variety of markets including automotive,
construction and agriculture; a global leader in manufacturing
pressure cylinders for propane, refrigerant, and industrial gases
and for cryogenic applications, water well tanks for commercial and
residential uses, CNG and LNG storage, transportation and
alternative fuel tanks, oil & gas equipment, and consumer
products for camping, grilling, hand torch solutions and helium
balloon kits; and a manufacturer of operator cabs for heavy mobile
industrial equipment; laser welded blanks for light weighting
applications; automotive racking solutions; and through joint
ventures, complete ceiling grid solutions; automotive tooling and
stampings; and steel framing for commercial construction.
Worthington employs approximately 11,000 people and operates 85
facilities in 11 countries.
Safe Harbor Statement
The Company wishes to take advantage of the Safe
Harbor provisions included in the Private Securities Litigation
Reform Act of 1995 (the “Act"). This press release includes
“forward-looking statements” within the meaning of the Act.
All statements by the Company, other than statements regarding
historical information, included in this press release that address
activities, events or developments that the Company expects,
believes or anticipates will or may occur in the future constitute
"forward-looking statements" within the meaning of the Act.
These statements include the anticipated impact of the pending sale
of WAVE’s European and Pacific Rim operations. All
forward-looking statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of
the Company, including the successful completion of the single,
integrated sale of the AWI international business and the WAVE
international business, general economic factors and other factors
described in the Company's reports filed with the SEC.
Contacts:CATHY M. LYTTLEVP, CORPORATE COMMUNICATIONSAND INVESTOR RELATIONS614.438.3077 | cathy.lyttle@WorthingtonIndustries.com SONYA L. HIGGINBOTHAMDIRECTOR, CORPORATE COMMUNICATIONS614.438.7391 | sonya.higginbotham@worthingtonindustries.com
200 Old Wilson Bridge Rd. | Columbus, Ohio 43085WorthingtonIndustries.com
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