Univar announces Streamline 2022 program
"Initiative is designed to accelerate growth, reduce leverage to 3.0x by end of 2021 and Improve EBITDA margins to 9% by end of 2022."
Univar Solutions Inc. has announced its Streamline 2022 ("S22") program which is designed to accelerate growth and increase earnings through a renewed focus on operational efficiency and cost reduction with a greater emphasis on, and the integration of, the company's digital capabilities, as well as a global approach to certain of the company's dedicated end market verticals.
The program, which may result in the sale of certain non-core assets, is expected to improve operational agility, drive faster sales growth, particularly in North America, reduce leverage to 3.0x by the end of 2021, and improve EBITDA margins to 9% by the end of 2022. S22 also encompasses a range of senior organizational alignments resulting in direct functional reporting of the North American segments to David Jukes, president and chief executive officer.
Jennifer McIntyre will assume the role of SVP, chief streamline officer and head of North American Operations. In this expanded role Jennifer will drive the completion of the Nexeo integration as well as our S22 cost and productivity efforts. Jennifer will leverage the company's operating and digital teams and skill sets to focus on delivering continued operational excellence.
Brian Herington will assume the role of SVP, chief commercial officer and head of North American Chemical Distribution. In this expanded role, Brian will continue to drive the step change improvements in Univar Solutions commercial practices globally as well as lead our chemical distribution business in the U.S. and Canada. Brian will build on the good work already done, to work to deliver market share growth through an omni-channel, customer-centric approach supported by digitized systems and automated processes.
Nick Powell will assume the role of SVP, president of EMEA/APAC and global head of Consumer and Industrial Solutions. In this expanded role, Nick will focus on consistency of performance for customers and suppliers in all geographies, working to provide new opportunities for growth. The expansion of this largely differentiated set of chemistries and ingredients is an important driver of the company's mix enrichment goals.
Jorge Buckup will continue in his role as President of Latin America.
As a result of these changes, Mark Fisher has stepped down as the company's President of USA and Canada to pursue other opportunities.
"While we are currently reporting solid second quarter results, and progressing as expected on our Nexeo integration plans, we are seeing changes in market conditions and customer preferences," said David Jukes, president and chief executive officer. "We believe that our S22 program, as part of our strategy to Streamline, Innovate and Grow, will help to ensure we have the agility to enhance our competitiveness, advance our digital capabilities to better serve customers and increase our operational and financial flexibility as we work to position the company to capture greater value from the market recovery and growth opportunities ahead."
Related to S22, the company may incur up to an incremental $50 million in charges in 2020, of which approximately $20 million would require cash. Expected cash proceeds from any divestments of non-core assets are greater than $200 million.