Owens Corning initiates review of strategic alternatives for glass fiber business
Owens Corning considers alternative options like a potential sale or spin-off as part of its transformative move to strengthen its position in building and construction materials.
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Owens Corning (Toledo, Ohio, U.S.), a global building and construction materials company, has decided to review strategic alternatives for its global glass fiber reinforcements (GR) business. The decision to explore alternatives for the GR business is consistent with the company’s strategy to focus on building and construction materials. A range of options are under consideration, including a potential sale, spin-off or other strategic option.
The business, which operates within the company’s Composites segment, manufactures, fabricates and sells glass fiber reinforcements in a variety of product forms. The GR business generates annual revenues of approximately $1.3 billion and has operations in 11 countries, with 18 manufacturing facilities. It supplies a wide variety of glass fiber products for applications in wind energy, infrastructure, industrial, transportation and consumer markets.
Owens Corning’s vertically integrated glass nonwovens business that supports the Roofing segment and other building products customers, along with the recently acquired WearDeck business, remain core activities of the company and are out of the scope of this evaluation.
“Our board and management team regularly review strategic opportunities with a goal to maximize shareholder value,” Brian Chambers, board chair and CEO of Owens Corning, says. “Through this disciplined approach to capital allocation, we have taken actions over the past several years to optimize our performance and have concluded it is the right time to explore options for our glass [fiber] reinforcements business as we continue to focus on strengthening our position in building and construction materials.”
Chambers adds that, throughout the company’s review, Owens Corning is committed to maintaining a strong customer relationships with the same high standards and close collaboration.
The company has retained Morgan Stanley & Co. LLC as financial advisor to assist in the review of strategic alternatives. There can be no assurance that the strategic review will result in any transaction or other outcome.
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