The Ohio-based firm on Thursday (29th Sep) said the decision will both better align its operations and sharpen its strategic focus on fast-growing markets.
The new standalone Steel Processing business will operate as a value-added steel processor with a unique capability set, sophisticated supply chain and pricing solutions and expanded product offerings.
Worthington will then be better positioned in growing end markets released to consumer products, building products and sustainable energy solutions.
Andy Rose, President and CEO of Worthington said, “Following two consecutive years of record earnings, we are excited to pursue this separation from a position of strength and create two distinct, market-leading companies with strong cash flows and compelling growth opportunities.”
“With our philosophy as the foundation, we will leverage the Worthington Business System driven by transformation, innovation and acquisitions. The separation will provide new career development opportunities for employees, position each company to better meet the evolving needs of customers and unlock value for shareholders.”
“Each company is expected to be well capitalised and better positioned to pursue its respective growth strategies while delivering superior returns for shareholders.”
gasworld understands that both businesses will continue to be headquartered in Columbus, Ohio and will likely keep ‘Worthington’ in the chosen new corporate names, which will be announced prior to completion of the separation.
John McConnell, Executive Chairman of Worthington’s Board of Directors, added, “The Board and management team regularly consider alternatives to unlock the value of our businesses and ensure we are best positioned to serve customers.”
“We recently re-segmented to better align each business with the attractive markets we serve, and the planned separation will further advance those efforts.”
The McConnell family is expected to continue as a meaningful, long-term shareholder of both companies.