Item 2.05. Costs Associated with Exit or Disposal Activities.
On March 30, 2021, the Board of Directors of GCP Applied Technologies Inc. (the
"Company") approved a business restructuring and repositioning plan (the "2021
Plan"). The 2021 Plan is focused on the Company's relocation of its corporate
headquarters to the Atlanta, Georgia area; the closure of its Cambridge,
Massachusetts campus; the build-out of a new global research and development
("R&D") center near the Boston/Cambridge area, as well as the consolidation of
other regional facilities and offices, including an organizational redesign
which is expected to lower costs. The Company expects to incur total pre-tax
costs in connection with the 2021 Plan of approximately $19 million, which
includes approximately $2 million of repositioning costs and an additional
$8 million to $9 million of asset write-offs mainly due to facility, equipment
and lease termination charges. In addition, the Company expects to incur
approximately $6 million of capital expenditures mostly related to the build-out
of the global R&D facility, corporate headquarters and information technology
infrastructure associated with the relocation.
Approximately $13 million to $15 million of the estimated pretax restructuring
and repositioning costs represent employee severance and other employee-related
costs and approximately $5 million represent office and facility consolidation
and other associated costs. The repositioning costs of approximately $2 million
are related mainly to employee recruitment and other related costs. The Company
expects substantially all of the restructuring and repositioning costs and
capital expenditures associated with the 2021 Plan to be settled in cash in the
aggregate amount of approximately $24 million to $26 million.
The Company expects to realize total pre-tax cost structure savings associated
with the 2021 Plan of approximately $13 million to $15 million mostly in
general, administrative and oveIrhead costs, with most of the savings occurring
in 2022. These savings are expected to benefit both the Specialty Construction
Chemicals and Specialty Building Materials operating segments and result in
overall general administrative and overhead cost reductions. The Company expects
substantially all of the restructuring actions under the 2021 Plan to be
complete by the end of June 2022.
Cautionary Statement Concerning 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.
Item 8.01. Other Events.
On March 31, 2020, the Company issued a press release titled "GCP Announces
Organization Changes and Restructuring to Improve Performance." A copy of the
press release is filed herewith as Exhibit 99.1 to this Current Report on Form
8-K and is incorporated by reference into this Item 8.01.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit
No. Description of Exhibit
99.1 Press release issued by GCP Applied Technologies, dated March 31,
2021.
104 The cover page from this Current Report on Form 8-K, formatted as
Inline XBRL
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses
GCP APPLIED TECHNOLOGIES INC. 
