JohnsonDiversey Reconstruction To Cost $81 Million in 2003

JohnsonDiversey Inc., Racine, WI, estimated total restructuring expenses for the period since acquisition of DiverseyLever business from Unilever, which closed on May 3, 2002, to be approximately $43 million. Also, the cash portion of that amount will be approximately $30 million, as stated during an investor teleconference on December 16, 2002.

JohnsonDiversey believed using a leverage ratio based on the period ended Sept. 27 2002, as many analysts have, distorted any resulting calculation, producing an estimate that is approximately $25 million too high. The methodology did not account for certain adjustments that were permitted for covenant calculation purposes under JohnsonDiversey’s senior secured credit facility and seasonality.

Based on current information, JohnsonDiversey estimated that for the 2003 fiscal year, restructuring costs will be approximately $81 million, of which the cash portion was estimated at approximately $78 million.