Owens Corning Initiates Review of Strategic Alternatives for Glass Reinforcements Business as part of Transformative Move to Strengthen Position in Building and Construction Materials
February 09 2024 - 7:00AM
Business Wire
Owens Corning (NYSE: OC), a global building and construction
materials leader, today announced that the company has decided to
review strategic alternatives for its global glass reinforcements
(GR) business. The decision to explore alternatives for the GR
business is consistent with the company’s strategy to focus on
building and construction materials.
The business, which operates within the company’s Composites
segment, manufactures, fabricates, and sells glass fiber
reinforcements in a variety of product forms. The GR business
generates annual revenues of approximately $1.3 billion and has
operations in 11 countries, with 18 manufacturing facilities. The
business supplies a wide variety of glass fiber products for
applications in wind energy, infrastructure, industrial,
transportation, and consumer markets.
Owens Corning’s vertically integrated glass nonwovens business
that supports the Roofing segment and other building products
customers, along with the recently acquired WearDeck business,
remain core activities of the company and are out of the scope of
this evaluation.
Brian Chambers, Board Chair and Chief Executive Officer of Owens
Corning, said, “Our Board and management team regularly review
strategic opportunities with a goal to maximize shareholder value.
Through this disciplined approach to capital allocation, we have
taken actions over the past several years to optimize our
performance and have concluded it is the right time to explore
options for our glass reinforcements business as we continue to
focus on strengthening our position in building and construction
materials."
“We’re proud of our 85-year pioneering legacy in glass
reinforcements products and technology,” said Chambers. “Our
talented glass reinforcements team has consistently produced
differentiated, high-quality products based on our material science
expertise, deep technical knowledge, and broad application
experience. We have built market-leading positions in key regions
and applications, including renewable energy, which creates the
opportunity to operate as a core business within another company or
as a stand-alone entity focused more on industrial end markets.
Throughout our review, we are committed to maintaining our strong
customer relationships with the same high standards and close
collaboration.”
The company has retained Morgan Stanley & Co. LLC as
financial advisor to assist in the review of strategic
alternatives.
A range of options are under consideration, including a
potential sale, spinoff, or other strategic option. There can be no
assurance that the strategic review will result in any transaction
or other outcome. The company has not set a timetable for
completion of the review and does not intend to disclose
developments or provide updates on the progress or status of the
review unless and until it deems further disclosure is appropriate
or required.
About Owens Corning
Owens Corning is a global building and construction materials
leader committed to building a sustainable future through material
innovation. Our three integrated businesses – Roofing, Insulation,
and Composites – provide durable, sustainable, energy-efficient
solutions that leverage our unique material science, manufacturing,
and market knowledge to help our customers win and grow. We are
global in scope, human in scale with approximately 18,000 employees
in 30 countries dedicated to generating value for our customers and
shareholders and making a difference in the communities where we
work and live. Founded in 1938 and based in Toledo, Ohio, USA,
Owens Corning posted 2022 sales of $9.8 billion. For more
information, visit www.owenscorning.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These forward-looking
statements are subject to risks, uncertainties and other factors
and actual results may differ materially from any results projected
in the statements. These risks, uncertainties and other factors
include, without limitation: whether the strategic review will
result in any transaction or other outcome, and the extent to which
we will realize the anticipated benefits of the strategic review;
levels of residential and commercial or industrial construction
activity; demand for our products; industry and economic conditions
including, but not limited to, supply chain disruptions,
recessionary conditions, inflationary pressures, interest rate and
financial markets volatility, and the viability of banks and other
financial institutions; availability and cost of energy and raw
materials; levels of global industrial production; competitive and
pricing factors; relationships with key customers and customer
concentration in certain areas; issues related to acquisitions,
divestitures and joint ventures or expansions; climate change,
weather conditions and storm activity; legislation and related
regulations or interpretations, in the United States or elsewhere;
domestic and international economic and political conditions,
policies or other governmental actions, as well as war and civil
disturbance; changes to tariff, trade or investment policies or
laws; uninsured losses, including those from natural disasters,
catastrophes, pandemics, theft or sabotage; environmental,
product-related or other legal and regulatory liabilities,
proceedings or actions; research and development activities and
intellectual property protection; issues involving implementation
and protection of information technology systems; foreign exchange
and commodity price fluctuations; our level of indebtedness; our
liquidity and the availability and cost of credit; our ability to
achieve expected synergies, cost reductions and/or productivity
improvements; the level of fixed costs required to run our
business; levels of goodwill or other indefinite-lived intangible
assets; price volatility in certain wind energy markets in the
U.S.; loss of key employees and labor disputes or shortages; and
defined benefit plan funding obligation; and factors detailed from
time to time in the company’s Securities and Exchange Commission
filings. The information in this news release speaks as of February
9, 2024, and is subject to change. The company does not undertake
any duty to update or revise forward-looking statements except as
required by federal securities laws. Any distribution of this news
release after that date is not intended and should not be construed
as updating or confirming such information.
Owens Corning Company News / Owens Corning Investor Relations
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Media Relations: Megan James 419.348.0768
Investor Relations: Amber Wohlfarth 419.248.5639
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