It was not a business we wanted to be in long-term, even though it’s a good business. We’re taking the volatility out of the portfolio and we’ll redeploy that cash. And as we said in our prepared remarks, we will actually do more share repurchase after the ASR ends next year because we’re in a great balance sheet position and we’ll have good free cash flow, and we plan on buying back more shares.
Lori Koch: Yes. And Michael, on the debt. So, we gave them a $350 million loan. It’s an eight-year loan if the venture were to go that long. So, like normally, they would monetize quicker than that, then we would get the repayment of the loan. So if it went to the longest poll, it would be eight years, but it’s most likely not the reality.
Mike Leithead: Great. That’s super helpful. And then second, I was hoping maybe you could give us a bit more color on the moving pieces within the Corporate and Other segment. I assume the retained businesses are doing fairly well in the auto backdrop. So, can you speak to what’s kind of the moving pieces there? And should we expect that business to continue to deliver some level of double-digit millions of EBITDA?
Lori Koch: Yes. So, the business is just for a refresher that are in corporate or primarily the auto adhesives business, and then we have Tedlar and multi-base, but the largest end market served is Automotive, and there’s a large EV exposure there. So, we saw a nice mid-single-digit volume growth again. We expect for a full year from a volume growth perspective the auto adhesives to grow up in the high single-digits and we continue to expect really great things from that business with the EV penetration that we’ve seen. So, from an earnings perspective, they were up very nicely as well. We saw nice earnings growth and margin appreciation in the third quarter. In the fourth quarter, we have a little bit of a deceleration, just a lot of their exposure is in the U.S. with automotive.
So, there’s some headwind from the strike that fortunately is now over, but there will be a little bit of a headwind from the October impact. And then the U.S. car build right now from IHS are expected to be down. But overall, the trajectory of this business is really strong. They had a great 2023, and we expect a really strong 2024 again.
Mike Leithead: Great. Thank you.
Lori Koch: Thank you.
Operator: Your next question comes from the line of John McNulty of BMO Capital Markets. Your line is open.
John McNulty: Yes, thanks for taking my question. So it looks like the electronics end markets seem like they’re starting to stabilize a little bit. You expect semi technologies to be up quarter-over-quarter. Can you add some color on what you expect from the other two subsectors in the E&I division? Do you see normal 4Q seasonality? Is there maybe a little bit of destock in the Industrial Solutions side? I guess, can you help us to think about the trends there?
Ed Breen: Yes. So semi will lift a little bit. So I would still say bounce along the bottom, but getting through the destock. And when I say a little bit, a few percentage points sequentially up in the business. The ICS business will be down some, but that’s all seasonality. If you look at it just the normal drop you see in seasonality, it’s less. So the business continues maybe a few more points to improve after the last two quarters of improvement. So kind of less seasonality because the business is recovering. And then on the industrial part of E&I, we’ll definitely see a little bit of destocking there. The biopharma destocking, which is in that business picked up some during the quarter. So I expect that to continue into the fourth quarter and hopefully be kind of done by them with that.
And there’s just a little bit of other destocking going along with some of our distributors in that business. So nothing significant, but I think that will see a little bit of softness.
John McNulty: Got it. Okay. Thanks. And then maybe just as a follow-up. I think as we get to kind of mid-December, the opt-out period should be kind of done on the PFAS side. I guess, can you give us any update on the water district settlement? Is there anything that you can speak to at this point? It seems like that should put a lot of lot of kind of the pressures behind you, but I guess any update there would be helpful.
Ed Breen: Yes. So we – the date that’s coming up here is the deadline for the opt-outs is December 4. And then we will see a list of who the opt-outs are on December 6. And then there’s a final fairness hearing in South Carolina on December 14. So it’s all kind of happening that first two weeks of December. And I really can’t add any other color. I just don’t have any other facts in front of me. We’re feeling obviously very good about it, and highly confident that this will get signed off and get done. And I’d just add, obviously, people are talking to the key water districts around the country. So we’re feeling good, and hopefully, we’re close to getting that cemented.
John McNulty: Great. Thanks very much for the color.
Ed Breen: Yes, thanks.
Operator: Your next question comes from the line of David Begleiter of Deutsche Bank. Your line is open.
David Begleiter: Thank you. Good morning.
Ed Breen: Good morning.
David Begleiter: Ed or Lori, just on the restructuring, do you have any more color you can provide some more concrete examples of where that $150 million is going to come from?
Lori Koch: Yes. So we had mentioned that it will primarily come from plant fixed costs and then the G&A or the functional cost to the overhead structure of the company. So the plant fixed cost is really a function of the destocking and what we can do from a volume perspective. So looking hard at contractors, looking part of the plant fixed costs spends, looking hard at making sure that we can temporarily adjust our cost structure to the line with the volume environment that we’re seeing. And then on the kind of the SAR side or the functional costs, general and administrative, that’s just continued cleaning out. So as Ed had mentioned, we’re constantly looking to make sure that we’re running to lead in an efficient organization as possible.
