York, Pennsylvania – March 1, 2019 – Glatfelter (NYSE: GLT), a leading global supplier of engineered materials, today announced it is launching the next steps in its strategic transformation, that will migrate the Company from a business unit structure to a functional operating model.
“We have laid the foundation for reshaping our business through a number of actions in 2018, including the first shipment of commercial products from our new state-of-the-art airlaid facility in Fort Smith, Arkansas, acquiring Georgia-Pacific’s European nonwovens business in Steinfurt, Germany, and completing of the sale of the Specialty Papers business. We are now accelerating the next phase of our strategic transformation to leverage our core competencies in engineered materials for maximizing growth opportunities and value for our shareholders,” said Dante C. Parrini, Chairman and Chief Executive Officer. “The initiative being announced today will target an organizational structure that is leaner and built for greater speed and efficiency. By migrating to a functional operating structure, we will create a more integrated and synergistic Company,” Mr. Parrini added.
As part of this effort, a team of individuals will be leading function-specific workstreams to fully identify the value and opportunities of moving to a functional operating model. Based on the work completed to date, the Company remains confident in its ability to achieve the previously-announced expected corporate cost savings of $14 million to $16 million by the end of 2019. Potential incremental savings and improving overall business performance will be the focus of the workstream groups. The Company expects to complete the work this summer and will provide details around total expected benefits and implementation costs at that time.
Given the planned migration to a functional model, Glatfelter also announced certain key leadership changes. Samuel L. Hillard, who currently serves as Vice President, Corporate Development & Strategy, has been named Senior Vice President, Chief Financial Officer, effective immediately. He succeeds John P. Jacunski, Executive Vice President and Chief Financial Officer, who is leaving the Company to pursue other opportunities. Mr. Hillard will continue to be responsible for corporate development and strategy in addition to serving as Chief Financial Officer. He will continue to report to Mr. Parrini.
Mr. Hillard joined Glatfelter in March 2016 as Vice President, Corporate Development & Strategy. Prior to joining Glatfelter, he served in Vice President roles within Corporate Development at Dover Corporation as well as SPX Corporation. Sam also previously worked for the Blackstone Group. Sam holds a Masters in Business Administration from Harvard Business School and a Bachelor of Business Administration in Finance from the University of Notre Dame.
Martin Rapp, Senior Vice President and Business Unit President of Composite Fibers, will be leaving the Company effective October 1, 2019. The responsibilities of Mr. Rapp’s current role will be redefined as part of the leadership structure associated with the functional model.
“I want to thank both Martin and John for their leadership and contributions to Glatfelter throughout their tenure, especially their work with the strategic activities involved in reshaping our business to date,” said Mr. Parrini. “Sam’s leadership in the transformation of the Company has been outstanding. His experience in driving the Company’s strategic outcomes in 2018 will serve him well in his expanded role as we migrate to the new operating model.”