On June28, 2018, OMNOVA Solutions Inc. issued a press release announcing its financial results for its first fiscal quarter ended May31, 2018. A copy of this press release is attached hereto as Exhibit 99.1.

On June 24, 2018, OMNOVA Solutions Inc. (“OMNOVA” or the “Company”) approved actions to optimize the Company's manufacturing footprint as part of the Company’s specialization strategy and in response to changing market conditions. The Company will close its styrene butadiene manufacturing facility in Green Bay, Wisconsin, moving production to its Mogadore, Ohio facility. The Company expects this transition to be completed by the third quarter of 2019.

As a result of the planned actions, the Company expects to recognize charges of $17 – 20 million through 2019, including a non-cash impairment charge of approximately $9 – $12 million that the Company expects to record in the third quarter of 2018. Severance and retention costs ranging from $2 – $3 million and production transition, facility conversion and other associated costs ranging from $3 – $5 million are expected to result in total cash expenditures ranging from $5 – $8 million. After the plant closure is complete, the Company expects to sell certain assets, including the land, for approximately $2 – $4 million.

As described above, the Company expects to record a non-cash impairment charge of approximately $9 – $12 million in the third quarter of 2018. This charge is not expected to result in future cash expenditures.

(c) Exhibits

OMNOVA SOLUTIONS INC Exhibit
EX-99.1 2 q22018pressrelease.htm EXHIBIT 99.1 Exhibit Exhibit 99.1             News Release                                    Contact:    Paul DeSantis Investor Relations(216) 682-7003OMNOVA Reports 27% year-over-year growth in Specialty Segment profitability in Q2 2018BEACHWOOD,…
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About OMNOVA SOLUTIONS INC. (NYSE:OMN)

OMNOVA Solutions Inc. (OMNOVA) is a provider of emulsion polymers, specialty chemicals and engineered surfaces for commercial, industrial and residential end uses. The Company operates in two segments: Performance Chemicals and Engineered Surfaces. OMNOVA Performance Chemicals segment produces a range of emulsion polymers and specialty chemicals based primarily on styrene butadiene (SB), styrene butadiene acrylonitrile (SBA), styrene butadiene vinyl pyridine, nitrile butadiene (NBR), polyvinyl acetate, acrylic, styrene acrylic, vinyl acrylic, glyoxal, fluorochemical and bio-based chemistries. The Company’s Engineered Surfaces segment develops, designs, produces and markets a line of functional and decorative surfacing products, including coated fabrics, vinyl, paper and specialty laminates, and performance films. It operates production facilities in the United States, Europe, China and India.