ACCO Brands Corporation (NYSE:ABD), a world leader in select categories of branded office products, today announced a major organizational realignment focused on creating greater efficiency, stimulating innovation and improving customer service.
Effective immediately, the Office Products and Document Finishing groups have been replaced by two geographic-based business segments, ACCO Brands Americas and ACCO Brands International. ACCO Brands Americas will be headed by Boris Elisman, president, who had been president of the Office Products Group. ACCO Brands International will be led by Peter Munk, president, who was previously president of ACCO Brands Europe. Both Elisman and Munk will report to Robert J. Keller, chairman and chief executive officer.
“These changes will result in fewer layers of management, a simplified business structure, better and faster decision-making and greater accountability,” said Keller. “More importantly, they will drive significantly improved customer service, as we establish one voice to customers and one global product development, strategy and sourcing organization with targeted priorities based on defined consumer needs. I am confident these actions will strengthen our market position in the office products industry while enhancing our ability to grow market share and achieve sustainable, profitable growth.”
The company’s Computer Products and Commercial Laminating Solutions groups will continue as separate business segments, reporting to Keller.
Global new product strategy, development and strategic sourcing will be centralized into a new organization headed by Kriss Kirchhoff, president, product generation, who will also report to Keller. Kirchhoff was previously president of the Document Finishing Group.
This realignment is intended to eliminate administrative redundancy, create clear accountability within the two new business segments and reduce annual operating expenses by an estimated $15-20 million, in addition to previously announced expense reductions. Cash restructuring charges associated with these actions are expected to be approximately $17 million. The realignment will reduce the number of business units operating around the world from nine to four.
The company expects to provide restated historical pro-forma financial information reflecting the revised business structure in early 2009, prior to reporting fourth quarter 2008 results.
As a reminder, the company will hold a conference call in connection with reporting its third quarter 2008 results on Wednesday, November 5, 2008 at 8:30 a.m. Eastern Time. A webcast can be accessed through the Investor Relations section of www.accobrands.com. The webcast will be in a listen-only mode.
About ACCO Brands Corporation
ACCO Brands Corporation is a world leader in select categories of branded office products, with annual revenues of nearly $2 billion. Its industry-leading brands include Day-Timer®, Swingline®, Kensington®, Quartet®, GBC®, Rexel, NOBO and Wilson Jones®, among others. Under the GBC brand, the company is also a leader in the professional print finishing market.
Forward-Looking Statements
This press release contains statements which may constitute "forward-looking" statements as that term is defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to certain risks and uncertainties, are made as of the date hereof and the company assumes no obligation to update them. ACCO Brands' ability to predict results or the actual effect of future plans or strategies is inherently uncertain and actual results may differ from those predicted depending on a variety of factors, including but not limited to fluctuations in cost and availability of raw materials; competition within the markets in which the company operates; the effects of both general and extraordinary economic, political and social conditions; the dependence of the company on certain suppliers of manufactured products; the effect of consolidation in the office products industry; the risk that businesses that have been combined into the company as a result of the merger with General Binding Corporation will not be integrated successfully; the risk that targeted cost savings and synergies from the aforesaid merger and other previous business combinations may not be fully realized or take longer to realize than expected; disruption from business combinations making it more difficult to maintain relationships with the company's customers, employees or suppliers; the results of the strategic review being made by the company of its Commercial Laminating Solutions business and whether any transaction will be completed, or any other action taken by the company, as a result thereof; foreign exchange rate fluctuations; the development, introduction and acceptance of new products; the degree to which higher raw material costs, and freight and distribution costs, can be passed on to customers through selling price increases and the effect on sales volumes as a result thereof; increases in health care, pension and other employee welfare costs; as well as other risks and uncertainties detailed from time to time in the company's SEC filings.
Contacts:
Rich Nelson
Media Relations
(847)
484-3030
or
Jennifer Rice
Investor Relations
(847)
484-3020
