Highlights Ongoing Initiatives to Drive Stockholder Value Creation
Committed to Enhancing Value for Axiall Stockholders
ATLANTA--(BUSINESS WIRE)--Apr. 7, 2016-- Axiall Corporation (“Axiall” or the “Company”) (NYSE: AXLL) today announced that it has filed preliminary proxy materials with the U.S. Securities and Exchange Commission (“SEC”) in connection with the Company’s 2016 annual meeting of stockholders, which it expects to schedule shortly.
In its proxy materials, Axiall highlights significant accomplishments and ongoing initiatives that Axiall’s Board and management team have implemented to strengthen, position and transform Axiall’s businesses for growth and increased profitability. These accomplishments include:
Completed a top management transition, with Timothy Mann, Jr., as Chief Executive Officer and President, leading a new executive team;
Initiated a plan to improve productivity and reduce costs by approximately $100 million by the end of 2016 and, by February 2016, had taken actions expected to achieve 80 percent of this objective;
Renegotiated the terms of the Company’s arrangement with Lotte Chemical USA Corporation (“Lotte”) to construct and operate a new state-of-the-art 1.0 million metric tons per annum ethane cracker (ethylene manufacturing plant) and announced a final investment decision to construct and operate that plant;
Sold the Company’s former Aromatics business in September 2015, including its production facility in Pasadena, Texas;
Initiated a strategic review of its Building Products business, which is expected to include a sale of that business that the Company believes could generate up to an aggregate of $600 to $700 million of after-tax net proceeds;
Sold its La Porte, Texas, chemical manufacturing facility in April 2015;
Paid a total of approximately $46 million in cash dividends to Axiall stockholders.
Axiall’s preliminary proxy statement notes that its Board members and management team are keenly focused on creating long-term stockholder value and remain open to all options to achieve that objective. The Board has not at this time determined to pursue any strategic alternative other than the previously announced process to sell the Company’s Building Products business. However, the Axiall Board has authorized management, with the assistance of the Company’s independent financial and legal advisors, to conduct discussions regarding potential strategic transactions with third parties, including Westlake Chemical Corporation (“Westlake”), that Axiall believes may be interested in considering a potential strategic investment in or other transaction involving Axiall. In this regard, Axiall has furnished substantial information to, and held discussions with, Westlake and other parties regarding its business and prospects, as well as synergies that could be available in a combination involving Axiall. There can be no assurance that any transaction will result from any of these discussions.