Item 2.05 Costs Associated with Exit or Disposal Activities

On December 14, 2023, ACCO Brands Corporation (the "Company") committed to a cost savings plan (the "Plan") which will result in the closing of its facility in Sidney, NY ("Sidney") which manufactures and distributes the Company's dated and planning products. The facility closure is part of the Company's ongoing global footprint rationalization program which is a key component of the Company's long-term strategy to simplify operations, reduce costs and improve overall financial performance. The Plan includes relocating the manufacturing activities to an external supplier, transitioning the distribution function to the Company's Booneville, MS facility over the next twelve months and closing the Sidney facility by the end of 2024. Sidney has approximately 300 employees that will be impacted by the Plan.

The Company expects to record a pre-tax restructuring charge for the period ending December 31, 2023 of approximately $9 million representing employee termination and benefit costs. We expect to record additional restructuring charges of $2 million during 2024 relating to the wind-up activities at Sidney. In addition, during 2024, we expect to record non-restructuring charges of $1 million and $1 million of capital expenditures related to the start-up activities at an external supplier and the Company's Booneville, MS facility.

Total cash expenditures are expected to be $13 million, and the Company currently anticipates cash outflows of approximately $7 million in 2024 and $6 million in 2025. The Sidney facility is owned by the Company and will be marketed for sale. However, current real estate market conditions make a future sale date uncertain and therefore the foregoing estimates do not reflect potential cash proceeds from the sale of the facility.

The actions to be taken under the Plan are expected to result in approximately $12 million in annualized cost savings when fully realized in calendar year 2025.

Forward-Looking Statements

This Current Report on Form 8-K contains "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements concerning our financial and business prospects in 2024 and over future years, including restructuring activities, restructuring charges, cash expenditures and cost savings. These statements, which represent the Company's expectations or beliefs concerning various future events, are based on current expectations that involve a number of risks and uncertainties that could cause actual results to differ materially from those of such Forward-Looking Statements. The ultimate results of any restructuring and business improvement actions depend on a number of factors, including potential changes to the final implementation plan, the impact of regulatory requirements regarding employee terminations, the time necessary to develop and implement the restructuring, and the level of success achieved through such actions in improving competitiveness, efficiency and effectiveness. We caution that undue reliance should not be placed on Forward-Looking Statements, which speak only as of the date made.

Except as may be required under applicable law, we undertake no duty to update our Forward-Looking Statements.



ACCO Brands Corporation published this content on 20 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 December 2023 21:58:33 UTC.