NEWMARKET, Ontario,—AirBoss of America Corp. is moving ahead with its strategic transition, saying it has hired a financial adviser to help review the various alternatives to create value for shareholders.
The Newmarket-based firm has hired TD Securities Inc. to help with the process, AirBoss said in a July 8 news release. Effective at the end of 2023, the company realigned into two reportable segments: AirBoss Rubber Solutions and AirBoss Manufactured products.
It said the transition was to reflect the company's focus on its core rubber compounding capabilities and strategic growth opportunities. The move eliminated AirBoss Defense Group and AirBoss Engineered Products as standalone business units.
In its July 8 release, AirBoss said the alternatives under review may include, but are not limited to: acquisitions, divestitures and various structural and financing options, including the potential monetization of the company's real estate assets. It added that the process is no assurance that any of these actions will be taken.
AirBoss also said there is no timetable for completion of the process and the firm does not intend to comment further unless it determines that further disclosure is necessary or appropriate.
"The senior leadership team and I are fully committed to the success of AirBoss," said Gren Schoch, chairman and co-CEO of AirBoss. "In this regard, we are committed to exploring all options to create value, with a focus on prioritizing key investments within our core competencies and continuing the transformation of AirBoss into a global market leader in the custom rubber compounding market and the other industries which it serves."
AirBoss is the second largest custom compounder in North America and also a supplier of finished rubber products designed to perform in challenging environments.
Sales for 2023 were down 10.7 percent to about $426 million. Adjusted EBITDA for the year dropped 41 percent to $26.8 million.
