Worthington Industries embarks on a transformative journey, greenlighting the separation of its Steel Processing arm, Worthington Steel, through a tax-free spin-off. Shareholders anticipate a pro rata distribution of Worthington Steel common shares, with trading set to commence on November 28, 2023. The move positions Worthington Steel and Worthington Enterprises as independent entities, poised for individual growth in steel processing and innovative solutions markets.
In a strategic move, Worthington Industries announces the approval of the separation of its Steel Processing business, Worthington Steel, via a tax-free spin-off. The Board's decision ushers in a new era for Worthington Industries, with a pro rata distribution of 100% of Worthington Steel's common shares to shareholders on record by November 21, 2023. Shareholders will automatically receive Worthington Steel shares without additional action.
Worthington Steel, post-separation, emerges as a dominant player in steel processing, specializing in electrical steel laminations and automotive lightweighting solutions. The company aims to maintain a robust balance sheet, adopting a strategic approach to capital allocation. Geoff Gilmore, Worthington Industries' future CEO for Worthington Steel, expresses excitement about the strategic focus, anticipating growth in electrification, sustainability, and infrastructure markets.
Simultaneously, Worthington Enterprises, the other entity post-separation, positions itself as a market leader in Building Products, Consumer Products, and Sustainable Energy Solutions. Focused on sustainability, technology, remodeling, and outdoor living, Worthington Enterprises eyes disruption in mature markets. Andy Rose, future CEO of Worthington Enterprises, sees this move as a milestone, shaping two distinct, market-leading companies with strong cash flows and compelling growth prospects.
The Company expects "when-issued" trading of Worthington Steel common shares to begin on November 28, 2023, and "regular-way" trading on December 1, 2023. Worthington Industries will undergo a name change to Worthington Enterprises, Inc., symbolizing a new chapter for the entity continuing to trade on the NYSE under the ticker symbol "WOR."
Worthington Industries' decision to separate Worthington Steel signifies a strategic shift, creating two independent entities, each poised for unique growth. The pro rata distribution of Worthington Steel common shares to shareholders reflects the company's commitment to providing value. Worthington Steel, with a focus on steel processing and innovation, anticipates growth in electrification and sustainability, while Worthington Enterprises gears up for advancements in building and consumer solutions. This move marks a pivotal moment in Worthington's evolution, setting the stage for distinct, market-leading entities.