Platform Specialty Products Corporation Announces Corporate Name Change Following Completion of the Sale of Arysta LifeScience, Provides Pro Forma Financial Outlook and Announces Authorization for up to $750 Million in Share Repurchases
- Platform to change its name to
Element Solutions Inc.at closing of the Arysta transaction
- Element Solutions Inc.’s annualized adjusted EBITDA excluding Arysta expected between
$450 million to $470 millionbased on adjusted EBITDA guidance range for 2018, and estimated run-rate cost savings from sale of Arysta and reorganization of approximately $25 milliontargeted in 2019
- Platform’s Board of Directors has authorized up to
$750 millionin share repurchases, conditioned on closing Nichelle Maynard-Elliottto join Platform Board effective August 15th, 2018
The closing of this transaction will start a new phase for Platform. Consistent with this transformation, Platform plans to change its name to
Use of Proceeds and Pro Forma Financial Outlook
Platform expects net cash proceeds of approximately
In the context of the Arysta transaction and the formation of Element Solutions, Platform intends to merge its corporate functions with those of its Performance Solutions segment. The divestiture of Arysta and this related reorganization are expected to generate approximately
1 Existing 2018 Adjusted EBITDA guidance range of
Chief Executive Officer
Platform will host a webcast/dial-in conference call to discuss the transaction and these other announcements at
To listen to the call by telephone, please dial (855) 357-3116 (domestic) or (484) 365-2867 (international) and provide the Conference ID: 4999088. The call will be simultaneously webcast at www.platformspecialtyproducts.com.
A replay of the call will be available for three weeks shortly after completion of the live call at www.platformspecialtyproducts.com.
This press release includes non-GAAP measures, such as annualized pro forma adjusted EBITDA and pro forma adjusted EBITDA guidance. These non-GAAP measures should be considered in addition to, not as a substitute for, measures of financial performance prepared in accordance with GAAP. “Pro forma” information in this press release excludes the results of the Arysta business by assuming a transaction closing on
Platform is a global and diversified producer of high-technology specialty chemicals and a provider of technical services. The business involves the formulation of a broad range of solutions-oriented specialty chemicals, which are sold into multiple industries, including automotive, agriculture, animal health, electronics, graphic arts, and offshore oil and gas production and drilling. More information on Platform is available at www.platformspecialtyproducts.com.
This press release contains forward-looking statements, including, but not limited to, statements related to the planned sale of Arysta and the timing for completion of this transaction; the ability of the parties to close this transaction, including obtaining regulatory approvals and meeting other closing conditions; use of proceeds; share repurchases, conditioned on the closing of the transaction; business strategy and financial outlook following the closing of the transaction, including net debt, long-term net leverage target range, estimated annual run-rate cost savings, pro forma adjusted EBITDA and pro forma adjusted EBITDA guidance on an annualized basis. Actual results could differ from those projected due to numerous factors, including, without limitation, the parties’ ability to successfully complete the proposed separation; the timing for completion; adverse effects on the parties' business operations or financial results; market volatility; legal, tax and regulatory requirements; unanticipated delays and transaction expenses; the impact of the transaction on Platform's employees, customers, suppliers and lenders; the diverting of management's attention from Platform's ongoing business operations; and the possibility of more attractive strategic options arising in the future. Additional information concerning these and other factors that could cause actual results to vary is, or will be, included in Platform's periodic and other reports filed with the Securities and Exchange Commission, including Platform's annual report on Form 10-K for the fiscal year ended December 31, 2017. These forward-looking statements are made as of the date of this press release and are based on management's estimates, assumptions and expectations with respect to future events and financial performance. Platform undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Relations Contact:
Vice President, Treasurer and Investor Relations
Source: Platform Specialty Products Corporation