W.R. Grace to Split in Two
Specialty chemical manufacturer W.R. Grace & Co said it would split into two companies to improve strategic focus, simplify operating structures and make better use of capital.
The company, which emerged from one of the longest U.S. bankruptcies in 2013, said on Thursday that the split would take place as a tax-free transaction to shareholders.
W. R. Grace said one company, which is likely to have sales of about $1.8 billion, will consist of its businesses that make products used in the refining, petrochemical, personal care and tire and rubber industries. Grace Chairman and Chief Executive Fred Festa will lead this business.
The other company will comprise Grace's specialty construction chemicals and specialty building materials unit, and have sales of about $1.5 billion.
Grace filed for Chapter 11 protection in 2001 after an asbestos leak at one of its mines led to a slew of lawsuits.
Separately, Grace said its net income fell by almost half in the fourth-quarter, while sales rose 3.5 percent.
Net profit fell to $15.5 million, or 21 cents per share, in the three months to Dec. 31 from $29.7 million or 38 cents per share, a year earlier.
Sales rose to $804.1 million from $776.7 million.
Grace's shares were untraded before the opening bell. Up to Wednesday's close of $91.11, shares of the Columbia, Maryland-based company had fallen about 5 percent in the last year.
Reporting By Tanvi Mehta
