Acco Brands announces three-year restructuring program, to reduce headcount

In a regulatory filing, Acco Brands committed to a three-year restructuring and cost savings program, with anticipated annualized pre-tax cost savings of at least $60M. This includes the annualized savings of $12M related to the previously announced Sidney, New York facility closure. The program incorporates initiatives to simplify and delayer the company’s operating structure and reduce costs through headcount reductions, supply chain optimization and global footprint rationalization. The company expects to record a pre-tax restructuring charge for the period ended December 31, 2023 of approximately $13M which is primarily employee termination and benefit costs. This is in addition to the $9M charge previously announced relating to the closure of its Sidney, New York facility. Total cash expenditures are expected to be $26M with cash outflows of $18M in 2024 and $8M in 2025. The Program also includes the company operating and reporting under two segments effective January 1. 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.