Brenntag AG / Key word(s): Strategic Company Decision/Strategic Company Decision
Transformation program "Project Brenntag" to deliver additional operating EBITDA contribution of EUR 220 million in total from the beginning of 2023
The Board of Management and the Supervisory Board of Brenntag AG (ISIN: DE000A1DAHH0) have today decided on the financial framework and further measures of its transformation program "Project Brenntag". The program aims to further expand Brenntag's leading market position and drive sustainable organic earnings growth.
Brenntag leads the chemicals distribution market and offers a full-line portfolio of chemicals and ingredients on a global level. Project Brenntag includes changes to the operating model, a differentiated go-to-market approach, an optimization of the global site network, an adjustment of the global workforce and changes in the Board of Management and the leadership structure of the group.
Brenntag already announced its future operating model together with changes in the Board of Management of Brenntag AG. The new operating model will be effective from 1 January 2021 and consists of two global divisions with a differentiated business steering and a distinct market approach: Brenntag Essentials and Brenntag Specialties.
Today, the Board of Management and the Supervisory Board of Brenntag AG decided on the following additional measures of Project Brenntag:
In order to increase efficiency, the site network will be optimized and about 100 sites are intended to be closed globally.
The company expects the implementation of all the various measures of Project Brenntag to lead to a global reduction of approximately 1,300 jobs out of the total workforce of around 17,500 employees. It is intended to phase in these reductions over the next two years in a socially responsible manner.
The Group anticipates Project Brenntag to deliver a sustainable annual contribution of additional operating EBITDA of about EUR 220 million. The contribution will increase year by year and the full annual potential will be reached already by the beginning of 2023. The overall net cash outflow to incur for the implementation of Project Brenntag is expected to total around EUR 370 million.
Project Brenntag is a multi-year transformation program to position the company for sustainable organic earnings growth.
Although the forward-looking statements in this communication are based on assumptions which Brenntag's management considers to be reasonable, they necessarily involve known and unknown risks and uncertainties that may cause actual results and future events to differ materially from the results and future events assumed in the statements.
Forward-looking statements are no guarantee of future performance, and readers should not attach undue importance to them. Unless required by securities law, Brenntag does not assume any obligation to update forward-looking statements when circumstances or management's estimates change.
For further information on factors that may cause actual results and future events to differ from those assumed in forward-looking statements, please refer to the reports published by Brenntag AG, including the section of the 2019 annual report entitled "Report on Expected Developments, Opportunities and Risks".
26-Oct-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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