ACCO Brands Reports Exit Costs, Officer Changes, Comp Arrangements

Ticker: ACCO · Form: 8-K · Filed: Jan 30, 2024 · CIK: 712034

Complexity: simple

Sentiment: mixed

Topics: restructuring, management-change, corporate-governance

TL;DR

**ACCO Brands is shaking things up with exit costs and officer changes.**

AI Summary

ACCO Brands Corporation filed an 8-K on January 30, 2024, reporting events from January 24, 2024. The filing indicates significant corporate activities including costs associated with exit or disposal activities, changes in directors or officers, and compensatory arrangements for officers. This matters to investors because these actions often signal strategic shifts, potential restructuring, or changes in leadership that could impact future financial performance and stock value.

Why It Matters

This filing signals potential strategic shifts and leadership changes at ACCO Brands, which could impact the company's operational efficiency and future profitability.

Risk Assessment

Risk Level: medium — Changes in leadership and restructuring activities can introduce uncertainty, but also potential for improved performance, making the risk level medium.

Analyst Insight

Investors should monitor ACCO Brands' upcoming financial reports for details on the costs and impacts of the exit/disposal activities and the specifics of the officer changes and compensatory arrangements, as these will clarify the strategic direction and potential financial implications.

Key Players & Entities

FAQ

What specific items were reported in ACCO Brands Corporation's 8-K filing on January 30, 2024?

The 8-K filing reported 'Cost Associated with Exit or Disposal Activities', 'Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers', 'Regulation FD Disclosure', and 'Financial Statements and Exhibits'.

What was the earliest event date reported in this 8-K filing by ACCO Brands Corporation?

The earliest event reported in this 8-K filing by ACCO Brands Corporation occurred on January 24, 2024.

What is the business address of ACCO Brands Corporation as stated in the filing?

The business address of ACCO Brands Corporation is Four Corporate Drive, Lake Zurich, Illinois, 60047.

What is the Commission File Number for ACCO Brands Corporation?

The Commission File Number for ACCO Brands Corporation is 001-08454.

What is the significance of 'Cost Associated with Exit or Disposal Activities' being reported in the 8-K?

The reporting of 'Cost Associated with Exit or Disposal Activities' indicates that ACCO Brands Corporation is likely undergoing some form of restructuring, divestiture, or discontinuation of certain operations, which will incur specific expenses.

Filing Stats: 1,509 words · 6 min read · ~5 pages · Grade level 13.7 · Accepted 2024-01-30 15:00:50

Key Financial Figures

Filing Documents

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities On January 24, 2024, ACCO Brands Corporation (the "Company") committed to a three-year restructuring and cost savings program (the "Program"), with anticipated annualized pre-tax cost savings of at least $60 million. This includes the annualized savings of $12 million related to the previously announced Sidney, NY facility closure. The Program incorporates initiatives to simplify and delayer the Company's operating structure and reduce costs through headcount reductions, supply chain optimization, global footprint rationalization, and better leveraging of our sourcing capabilities. As a result of these actions, the Company will improve its speed of execution and bring key leaders closer to the customers. The Company expects to record a pre-tax restructuring charge for the period ended December 31, 2023 of approximately $13 million which is primarily employee termination and benefit costs. This is in addition to the $9 million charge previously announced relating to the closure of our Sidney, NY facility. Total cash expenditures are expected to be $26 million with cash outflows of $18 million in 2024 and $8 million in 2025. The Program also includes the Company operating and reporting under two segments effective January 1, 2024. The two reportable segments will be the Americas and International. The Americas reportable segment includes the U.S., Canada, Brazil, Mexico and Chile. The International reportable segment includes EMEA, Australia, New Zealand, and Asia. The estimates of the charges and expenditures that the Company expects to incur in connection with the Program, and the timing thereof, are subject to a number of assumptions, and actual amounts may differ materially from estimates. In addition, the Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the Program. Item

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure The Company issued a press release on January 30, 2024 regarding the Program, a copy of which is attached hereto as Exhibit 99.1 and incorporated by reference herein. The information included or incorporated by reference in this Current Report on Form 8-K under this Item 7.01 is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits 10.1 Employment Contract, dated January 29, 2024, between Mr. Cezary Monko and Esselte Polska Sp. z o o. 99.1 Press release of the Company announcing cost reduction program dated January 30, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

Forward-Looking Statements

Forward-Looking Statements Factors that could affect our results or cause our plans, actions and results to differ materially from current expectations include, among others, our ability to successfully execute the actions identified as part of the cost reduction program and realize the anticipated cost savings and operational synergies as well as other risks and uncertainties described in "Part I, Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022, and in other reports we file with the SEC. Forward-looking statements should be considered in light of these risks and unce

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ACCO Brands Corporation (Registrant) Date: January 30, 2024 By: /s/ Deborah A. O'Connor Name: Deborah A. O'Connor Title: Executive Vice President and Chief Financial Officer

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