Grace To Split Into Two Public Companies - Quick Facts

(RTTNews) - W. R. Grace & Co.'s (GRA) board has approved a plan to separate into two independent, publicly traded companies. The two companies, to be named prior to closing, will be "New Grace," comprised of Grace's Catalysts Technologies and Materials Technologies business units, excluding the Darex packaging business, and "New GCP," comprised of Grace's Construction Products business segment and the Darex packaging business. The separation transaction is planned to be a tax-free spin-off to Grace shareholders for U.S. federal income tax purposes, and is likely to be completed in around 12 months.

The firm expects New GCP to continue to be a leader in cement and concrete chemicals, specialty building materials and can sealants and coatings with strong brands and positions. New GCP will aim to leverage its independent company platform and strong free cash flow to accelerate growth in its global construction products segments and to maintain its segment leadership positions in can sealants and coatings.

Following the transaction closure, New Grace will continue to be led by Fred Festa, Chairman and Chief Executive, and Hudson La Force, Senior Vice President and Chief Financial Officer. Greg Poling, currently President and Chief Operating Officer of Grace, will lead New GCP as President and Chief Executive. The separation transaction is intended to be a tax-free spin-off to Grace shareholders for U.S. federal income tax purposes.