17:43 PM | January 18, 2016 | —Robert Westervelt
W.R. Grace says the previously announced spin-off of GCP Applied Technologies (GCP), its construction products and packaging sealants and coatings businesses, will be completed on 3 February. Greg Poling, currently Grace COO, has been designated GCP president and CEO.
Grace shareholders will receive one share of GCP Applied Technologies common stock for every one share of Grace common stock held as of the close of business on 27 January, the record date for the distribution. The distribution of GCP Applied Technologies common stock is expected to occur on 3 February. GCP shares are expected to begin when-issued trading on 26 January, and common shares are expected to begin regular-way trading on 4 February on the New York Stock Exchange under the ticker symbol GCP.
GCP had 2014 sales of $1.5 billion and net income of $134.3 million. The construction chemicals segment, including concrete admixtures and cement additives, posted 2014 revenue of $726 million and an adjusted Ebitda margin just under 13%. The building materials segment, building envelope products as well as specialized cementitious and chemical grouts, posted 2014 revenue of $379.3 million and adjusted Ebitda margin of 22%. Darex packaging technologies, a maker of can sealants and closures as well as packaging coatings, had 2014 revenues of $374.8 million and adjusted Ebitda margin of 21%.
“As independent companies, we believe Grace and GCP will benefit from enhanced strategic, operating, financial, and investment flexibility and are poised to generate significant value for our shareholders,” says Fred Festa, Grace chairman and CEO.
Grace says the GCP is expected to sell $525 million in senior bonds due 2023 and enter a new credit facility that includes a $275-million term loan. Debt proceeds will be used fund a $750 million cash distribution to Grace upon the spin-off.