Commensurate with the recent divestiture of the Company’s
Engineered Papers business, Mativ Holdings, Inc. (NYSE: MATV)
(“Mativ” or the “Company”) today announced organizational
realignment initiatives that will streamline organizational size
and complexity, and leverage business-critical resources to enhance
customer support. As a result of these initiatives, the Company
expects to achieve an annualized run-rate of $20 million of
overhead cost reduction in 2024 and an additional $20 million by
the end of 2026, effectively reducing overhead costs by
approximately 15% over that timeframe.
The first wave of this initiative is primarily driven by
workforce reductions and indexed toward senior levels of the
organization. The second wave of savings will be unlocked by system
integrations, further restructuring, and transactional
efficiencies. The 2024 charges associated with these initiatives
are estimated to be $15-$20 million, which are expected to be
incurred predominantly in the first half of 2024.
As part of the realignment, the Company will reorganize into two
new segments starting in Q1 2024: Filtration & Advanced
Materials, focused primarily on filtration and protective solutions
end markets, and Sustainable & Adhesive Solutions, focused
primarily on release liners, industrials, healthcare, and packaging
and specialty papers end markets. Christoph Stenzel, Filtration
President, has been promoted to Group President, Filtration &
Advanced Materials, and Ryan Elwart will join Mativ as Group
President, Sustainable & Adhesive Solutions, effective as of
January 30, 2024. Mr. Elwart joins Mativ from Georgia-Pacific,
where he spent the last 16 years in roles of increasing
responsibility, most recently as Chief Customer Officer of
Georgia-Pacific’s Consumer Products division.
“The two consolidated segments, in addition to reducing
organizational complexity and enabling substantial cost savings,
will allow us to better support our customers through increased
cross-selling opportunities, shared technologies and leveraging
selling, marketing and R&D expertise,” said Julie Schertell,
president and chief executive officer of Mativ. “I am very pleased
to promote Christoph and welcome Ryan to the Mativ team. These
appointments are paramount to the growth of our business and
perfectly complement our leadership team.”
“We are continuing to aggressively drive our portfolio toward
higher growth and higher margins,” Schertell continued. “This
started with the merger in mid-2022, followed by the divestiture of
Engineered Papers in late 2023. Now is the right time to resize our
non-operating costs, and while this is never an easy task, it is
important for our future. The savings are substantial and support
our target to deliver mid-teen EBITDA margins, increased cash flow,
and our continued focus on deleveraging,” concluded Schertell.
About Mativ
Mativ Holdings, Inc. is a global leader in specialty materials
headquartered in Alpharetta, Georgia. The company makes material
impacts on the world every day through a wide range of critical
components and engineered solutions that solve our customers’ most
complex challenges. We manufacture on three continents and generate
sales in nearly 100 countries through our family of
business-to-business and consumer product brands. The company’s two
segments, Filtration & Advanced Materials and Sustainable &
Adhesive Solutions, target premium applications across diversified
and growing end-markets, from filtration to healthcare to
sustainable packaging and more. Our broad portfolio of technologies
combines polymers, fibers, and resins to optimize the performance
of our customers’ products across multiple stages of the value
chain. Our leading positions are a testament to our best-in-class
global manufacturing, supply chain, and materials science
capabilities. We drive innovation and enhance performance, finding
potential in the impossible.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
(the "Act") that are subject to the safe harbor created by that Act
and other legal protections. Forward-looking statements include,
without limitation, those regarding positioning Mativ for long-term
success and right-sizing Mativ’s administrative functions, the
expected benefits of strategic realignment actions, including
reducing costs allowing Mativ to better support customers, Mativ’s
expected financial position, business strategy, operating plans,
capital and other expenditures, acquisitions and divestitures, and
other plans and objectives related to the planned strategic
realignment actions, including the amount and timing of expected
EBITDA margin benefit, increased cash flow and returns, and
continued deleveraging, and other statements generally identified
by words such as "believe," "expect," "intend," "guidance," "plan,"
"forecast," "potential," "anticipate," "confident," "project,"
"appear," "future," "should," "likely," "could," "may," "will,"
"typically," and similar words.
These forward-looking statements are prospective in nature and
not based on historical facts, but rather on current expectations
and on numerous assumptions regarding the business strategies and
the environment in which Mativ will operate in the future and are
subject to risks and uncertainties that could cause actual results
to differ materially from those expressed or implied by those
statements. No assurance can be given that such expectations will
prove to have been correct and persons reading this presentation
are therefore cautioned not to place undue reliance on these
forward-looking statements which speak only as at the date of this
press release. These statements are not guarantees of future
performance and involve certain risks and uncertainties, and
assumptions that may cause actual results to differ materially from
our expectations as of the date of this release. These risks
include, among others, general economic conditions, the preliminary
nature of the estimates related to the strategic realignment
actions and the possibility that all or some of the estimates may
change as Mativ’s analysis develops and additional information is
obtained, Mativ’s ability to timely implement the strategic
realignment actions in a manner that will positively impact the
Company’s financial condition and results of operations, the impact
of the strategic realignment actions on Mativ’s relationships with
its employees, customers and vendors, the amount of costs, fees,
expenses and charges related to the strategic realignment actions
and the possibility of unexpected costs, liabilities or delays in
connection with the strategic realignment actions, risks that the
strategic realignment actions disrupt current plans and operations
of Mativ, and factors that may cause Mativ to be unable to achieve
the expected benefits of the strategic realignment actions. All
forward-looking statements made in this press release are qualified
by these cautionary statements. Forward-looking statements herein
are made only as of the date of this press release, and Mativ
undertakes no obligation, other than as may be required by law, to
update or revise any forward-looking or cautionary statements to
reflect changes in assumptions, the occurrence of events,
unanticipated or otherwise, or changes in future operating results
over time or otherwise. Also see the information under the captions
“Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” in Mativ's most
recent annual report on Form 10-K for the year ended December 31,
2022 and any material updates to these factors contained in any of
Mativ’s future filings with the U.S. Securities and Exchange
Commission. The discussion of these risks is specifically
incorporated by reference into this release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240124468369/en/
Chris Kuepper Director, Investor Relations +1-770-569-4229
investors@mativ.com
Media Brendan Streich VP, Global Communications
media@mativ.com
Website: http://www.mativ.com
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