Final Thoughts
Worthington Announces New Mgmt Teams, Split on Track for '24
February 3, 2023
Worthington Industries Inc. has announced the senior leadership teams for New Worthington and Worthington Steel.
The appointments will be effective on completion of Columbus, Ohio-based Worthington’s planned separation of the steel processing business, tentatively set for early 2024.
“The leadership teams of New Worthington and Worthington Steel reflect the unique focus and strategic priorities of each company, and the leaders named will bring highly relevant industry and functional expertise to their roles,” Worthington president and CEO Andy Rose said in a statement.
New Worthington will focus on end markets in consumer products, building products, and sustainable energy solutions, Worthington said. In addition to president and CEO Andy Rose, the New Worthington leadership team will be composed of:
• Joe Hayek, EVP and chief financial operations officer. Worthington vice president and chief financial officer since November 2018.
• Eric Smolenski, president, building products and sustainable energy solutions. Worthington president of building products and sustainable energy solutions since June 2021.
• Steve Caravati, president, consumer products. Worthington president of consumer products since June 2021.
Worthington Steel will be a steel processor and producer of electrical steel laminations and automotive light-weighting solutions. It will look to expand on opportunities in electrification, sustainability, and infrastructure spending.
In addition to Geoff Gilmore serving as president and CEO, the leadership team will include:
• Tim Adams, VP and CFO, named Worthington vice president of strategy and corporate development for the steel processing business in 2012.
• Jeff Klingler, EVP and chief operating officer, named Worthington president of steel processing in May 2019.
As previously announced, the Worthington 2024 plan will result in two independent, publicly traded companies.
Worthington said it plans to separate via a distribution of stock of the steel processing business, expected to be tax-free to shareholders for US federal income tax purposes.
The company said it remains on track to complete the separation by early next year, subject to general market conditions, finalization of the capital structure of the two companies, completion of steps necessary to qualify the separation as a tax-free transaction, receipt of regulatory approvals, and final approval by the company’s board.
More information will be available at www.WorthingtonIndustries.com/W24
The company also announced that New Worthington and Worthington Steel will each set their own greenhouse-gas-emission reduction targets aligned with a 1.5-degree Celsius science-based target, with a goal to achieve net-zero emissions by 2050.
In connection with this, Worthington said it will delay setting reduction targets and applying to the Science Based Targets initiative. New Worthington and Worthington Steel will apply as independent companies following completion of the separation.
By Ethan Bernard, ethan@steelmarketupdate.com
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