Worthington Industries Inc., Columbus, Ohio, will separate its Steel Processing business into a new public company. Worthington expects the separation to be complete by early 2024.
The planned separation will result in two independent, publicly traded companies, each poised to capitalize on differentiated growth and value creation strategies. The Steel Processing business will be a value-added steel processor with a unique capability set, sophisticated supply chain and pricing solutions and expanded product offerings in electrical steel laminations and laser-welding solutions.
The other company, New Worthington, will maintain its brands in consumer products, building products and sustainable energy.
"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,” said John McConnell, executive chairman. “As Worthington plans to become two standalone public companies, these guiding principles will remain intact for both companies. I am confident that our business leaders will carry forward our people-first philosophy and successfully lead each business through its next phase of growth.”
“Both businesses will continue to be headquartered in Columbus, Ohio and will likely keep ‘Worthington’ in their new corporate names, which will be announced prior to completion of the separation. We are taking one great company and making two, building on our proud legacy and carrying forward our winning culture and commitment to the communities where we live and work,” said Andy Rose, president and CEO.
Following the separation, the processing business, being called Worthington Steel will be positioned to capitalize on expanding opportunities in electrification, sustainability and infrastructure spending, executives said. Worthington Steel will have a unique capability set and sophisticated supply chain and pricing solutions to serve its blue chip customers, grow market share and increase margins.
For the fiscal year 2022, Worthington’s Steel Processing business generated $3.9 billion in sales. The company ranked ninth in the most recent MCN Top 50.
Worthington Steel intends to continue its balanced approach to capital allocation and maintain a strong balance sheet and a dividend policy that is consistent with Worthington Industries’ historic practice, executives said.
Geoff Gilmore, currently COO of Worthington, will serve as CEO of Worthington Steel.
The separation is expected to be completed by early 2024, but there can be no assurance regarding the ultimate timing of the separation or that the separation will ultimately occur.