GCP Applied Technologies outlines restructuring plans
On August 1 the Board of Directors of the Company approved a business restructuring and repositioning plan. The 2018 Plan is designed to streamline operations and improve profitability primarily within the concrete admixtures product line of our Specialty Construction Chemicals segment by focusing on our core markets, rationalizing non-profitable geographies, reducing our global cost structure, and accelerating the integration of VERIFI( into our global admixtures business.The Company expects that it will incur total pre-tax costs in connection with the 2018 Plan of approximately $30 million to $35 million, of which approximately $20 million to $25 million represents restructuring costs and approximately $10 million represents repositioning costs. The Company expects to realize total annualized pre-tax cost savings associated with the 2018 Plan of approximately $25 million, approximately $6 million to $8 million of which it expects to realize in 2018, with the entire annualized pre-tax savings of approximately $25 million expected to be realized in 2019. Substantially all of the restructuring actions under the 2018 Plan are expected to be completed by the end of 2019. The 2018 Plan is separate and additional to the plan approved by the Company's Board of Directors on June 28, 2017. The Company is on track to achieve the cost savings targets of the 2017 Plan.