Item 2.05. Costs Associated with Exit or Disposal Activities.
On January 26, 2023, JELD-WEN Holding, Inc. (the "Company") announced to
employees a restructuring plan to close a manufacturing facility in Atlanta,
Georgia in a continuing effort to optimize the Company's footprint and drive
operational efficiencies (the "Plan").
The Company expects to incur pre-tax restructuring expenses, other closure costs
and capital spending, including building restoration, equipment relocation and
employee-related costs, of approximately $19 million, substantially all of which
are expected to be incurred by the end of the third quarter of 2023.
Approximately $15 million of the expected expense and investment related to the
Plan will be cash items, including approximately $3 million of capital
expenditures. The Company expects to realize annual estimated cost savings of
approximately $11 million. The Plan is expected to be substantially completed by
the end of the third quarter of 2023.
The estimates of the charges and expenditures that the Company expects to incur
in connection with the Plan, and the timing thereof, are subject to a number of
assumptions and actual amounts may differ materially from estimates.
In addition, the Company may incur other charges or cash expenditures not
currently contemplated due to unanticipated events that may occur, including in
connection with the implementation of the Plan.
Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements, including,
but not limited to, statements related to the expected savings and other
benefits of the Plan, the timing of completion of the Plan, and the expected
costs, cash expenditures and charges of the Plan within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based upon the Company's current plans, assumptions, beliefs, and
expectations. Forward-looking statements are subject to the occurrence of many
events outside of the Company's control. Actual results and the timing of events
may differ materially from those contemplated by such forward-looking statements
due to numerous factors that involve substantial known and unknown risks and
uncertainties. Risks and uncertainties that could cause actual results to differ
materially include, but are not limited to, the information under the "Risk
Factors" section of the Company's Annual Report on Form 10-K filed with the U.S.
Securities and Exchange Commission (the "SEC") on February 22, 2022 and
Quarterly Reports on Form 10-Q filed with the SEC in 2022.
Forward-looking statements should be considered in light of these risks and
uncertainties. Investors and others are cautioned not to place undue reliance on
forward-looking statements. All forward-looking statements contained herein
speak only as of the date hereof. The Company assumes no obligation and does not
intend to update these forward-looking statements, except as required by law.
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