Mativ Holdings 8-K: Restructuring & Officer Changes Reported

Ticker: MATV · Form: 8-K · Filed: Jan 24, 2024 · CIK: 1000623

Complexity: simple

Sentiment: mixed

Topics: restructuring, officer-changes, corporate-governance

TL;DR

**Mativ Holdings is restructuring, expect one-time costs but potential long-term gains.**

AI Summary

Mativ Holdings, Inc. filed an 8-K on January 24, 2024, reporting on "Cost Associated with Exit or Disposal Activities" and "Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers." This indicates the company is undergoing restructuring, which could involve facility closures or significant personnel changes, potentially impacting future operational efficiency and profitability. Investors should note these changes as they could lead to one-time costs but also long-term benefits from a streamlined organization.

Why It Matters

This filing signals Mativ Holdings is actively restructuring, which could lead to short-term costs but potentially improve long-term financial health and operational focus.

Risk Assessment

Risk Level: medium — Restructuring activities can involve significant one-time costs and operational disruptions, creating uncertainty for investors.

Analyst Insight

A smart investor would monitor Mativ Holdings' upcoming financial reports for specific details on the costs and benefits of these restructuring activities and any new leadership appointments, as these will clarify the long-term impact on the company's financial performance.

Key Players & Entities

Forward-Looking Statements

FAQ

What specific items are reported in this 8-K filing by Mativ Holdings, Inc.?

The 8-K filing by Mativ Holdings, Inc. reports on "Cost Associated with Exit or Disposal Activities" and "Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers" as of January 24, 2024.

What is the date of the earliest event reported in this 8-K filing?

The date of the earliest event reported in this 8-K filing is January 24, 2024.

What is the Commission file number for Mativ Holdings, Inc.?

The Commission file number for Mativ Holdings, Inc. is 1-13948.

Where are Mativ Holdings, Inc.'s principal executive offices located?

Mativ Holdings, Inc.'s principal executive offices are located at 100 Kimball Place, Suite 600, Alpharetta, Georgia, 30009.

What is the telephone number for Mativ Holdings, Inc.?

The telephone number for Mativ Holdings, Inc. is 1-800-514-0186.

Filing Stats: 1,671 words · 7 min read · ~6 pages · Grade level 14.2 · Accepted 2024-01-24 16:48:00

Key Financial Figures

Filing Documents

05

Item 2.05 Costs Associated with Exit or Disposal Activities. On January 24, 2024, the Board of Directors of Mativ Holdings, Inc. (the "Company") unanimously approved an organizational realignment plan (the "Plan") that is expected to streamline organizational size and complexity and leverage business-critical resources to enhance customer support. As part of the Plan, the Company plans to reorganize into the following two new segments starting in the first quarter of 2024: Filtration & Advanced Materials, focused primarily on filtration and protective solutions end markets, and Sustainable & Adhesive Solutions, focused primarily on the release liners, industrials, healthcare, and packaging and specialty papers end markets. The Company also intends to reduce its workforce, indexed toward senior levels of the organization, with most of these actions expected to be executed in the first quarter of 2024 (the "RIF"). Decisions regarding the elimination of positions as well as the timing of separations are subject to local law and consultation requirements in certain countries, as well as the Company's business needs. Once these initial organizational design changes contemplated by the Plan are fully executed, the Company expects to achieve an annualized run-rate of $20 million of overhead cost reduction in 2024. The Company estimates that it will incur approximately $15 million to $20 million in restructuring and restructuring-related charges in 2024 in connection with the Plan, consisting primarily of employee severance payments and other termination benefits, which are expected to be incurred predominantly in the first half of 2024. The foregoing estimated amounts do not include any non-cash charges associated with equity-based compensation. The Company expects future initiatives under the Plan to include system integrations, further restructuring and transactional efficiencies, resulting in an additional $20 million in overhead cost reduction by the end of 20

02

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers On January 24, 2024, the Company announced the following executive officer appointments, effective as of January 30, 2024: Christoph Stenzel has been appointed as Group President, Filtration and Advanced Materials. Mr. Stenzel has served as President – Filtration of the Company since the closing of the Company's merger with Neenah, Inc. on July 6, 2022. Prior to that, he spent almost 20 years at Neenah, Inc., serving in multiple leadership roles, including Vice President, Filtration. Ryan Elwart has been appointed as Group President, Sustainable and Adhesive Solutions. Mr. Elwart joins the Company from Georgia-Pacific, where he spent the last 16 years in roles of increasing responsibility, most recently as Chief Customer Officer of Georgia-Pacific's Consumer Products division. Andrew Downard has been appointed as Chief Supply Chain Officer. Mr. Downard has served as Executive Vice President, Global Supply Chain of the Company since September 2022. Prior to that, Mr. Downard served as the Senior Vice President of Supply Chain, Operations, and Analytics for Apex Tool Group from 2017 to September 2022. In connection with their appointments, Messrs. Stenzel, Elwart, and Downard will participate in the Company's long-term equity compensation plan on an ongoing basis pursuant to the terms of the Company's 2015 Long-Term Incentive Plan, all as determined by the Company's Compensation Committee. The selection of Messrs. Stenzel, Elwart, and Downard was not pursuant to any arrangement or understanding with respect to any other person. There are no family relationships between Messrs. Stenzel, Elwart, or Downard and any director or executive officer of the Company, and there are no transactions between Messrs. Stenzel, Elwart, or Downard and the Company that would be required to be reported under Item 404(a) o

Financial Statements and Exhibits

Financial Statements and Exhibits (d) Exhibits Exhibit No. Description of Exhibit 99.1 Press Release dated January 24, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act") that are subject to the safe harbor created by that Act and other legal protections. Forward-looking statements include, without limitation, those regarding positioning Mativ for long-term success and right-sizing Mativ's administrative functions, the expected benefits of strategic restructuring actions, including reducing costs allowing Mativ to better support customers, Mativ's expected financial position, business strategy, operating plans, capital and other expenditures, acquisitions and divestitures, and other plans and objectives related to the planned strategic restructuring actions, including increased run rate cost reductions, cash flow and returns, and continued de-leveraging, and other statements generally identified by words such as "believe," "expect," "intend," "guidance," "plan," "forecast," "potential," "anticipate," "confident," "project," "appear," "future," "should," "likely," "could," "may," "will," "typically," and similar words. These forward-looking statements are prospective in nature and not based on historical facts, but rather on current expectations and on numerous assumptions regarding the business strategies and the environment in which Mativ will operate in the future and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. No assurance can be given that such expectations will prove to have been correct and persons reading this presentation are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this press release. These statements are not guarantees of future performance and involve certain risks and uncertainties, and assumptions that may cause actual results to differ materially from our expect

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. MATIV HOLDINGS, INC. (Registrant) By: /s/ Mark W. Johnson Mark W. Johnson Chief Legal Officer and Corporate Secretary Dated: January 24, 2024

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