Worthington Board Approves Separation of Companies
By Metal Center News Staff
on Nov 13, 2023
The board of directors of Worthington Industries Inc. has approved the previously announced separation of its Steel Processing business, Worthington Steel Inc. The spinoff is generally intended to be tax-free to shareholders for U.S. federal income tax purposes.
The board declared a pro rata distribution of 100 percent of the outstanding common shares of Worthington Steel to Worthington Industries shareholders of record as of the close of business on Nov. 21, 2023. As a result of the distribution, Worthington Industries shareholders will receive one common share of Worthington Steel for every one common share of Worthington Industries they hold on the record date.
No action is required by Worthington Industries shareholders to receive the distributed common shares of Worthington Steel.
Following the planned separation, Worthington Steel will be a leading steel processor and producer of electrical steel laminations and automotive lightweighting solutions. Worthington Steel expects to maintain a strong balance sheet and continue its balanced approach to capital allocation, the company claimed. In addition to attractive growth opportunities through strategic capital investments, Worthington Steel will be well-positioned to capitalize on growth opportunities from the anticipated global shift toward electrified vehicles.
“This is an exciting step toward Worthington Steel’s launch as an independent company,” said Geoff Gilmore, executive vice president and COO, Worthington Industries, and the future CEO of Worthington Steel. “Our sharpened strategic focus is expected to fuel our growth in the electrification, sustainability and infrastructure markets, and we look forward to capitalizing on new growth opportunities as a standalone organization.”