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  "documentTitle": "GCP Applied Technologies (GCP)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2020-05-11 00:00:00",
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  "notes": "Uses a waterfall-style comparison to isolate organic revenue decline by subtracting M&A contribution.",
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      "kind": "callout",
      "text": "Without spending ~$200 million on acquisitions, GCP's revenue would have declined $115 million or ~11% between 2016 and 2019, an alarmingly large decline!",
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      "text": "GCP Total Revenue Has Declined Since Spin-Off",
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      "text": "The Company stated that GCP acquired approximately $90 million of revenue in 2016 through 2019, yet even with the benefit of these bolt-on transactions, total revenue has declined since spinning off from W.R. Grace.\nAs a reminder, industry conditions over the past four years have been robust(1), with the global construction industry growing at 2% - 4% CAGR.(2)(3)\nWe believe GCP's revenue performance over the past 4 years is evidence of poor management and poor Board oversight.",
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      "text": "Total Revenue: 10.9% Decline",
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      "text": "The Company has spent approximately $200 million on six bolt-on M&A transactions since spin-off, yet total revenue has declined.",
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      "text": "Source: GCP's public filings, U.S. Census Bureau, Eurostat. (1) See updated slide 27 from our April 30th presentation attached hereto as Appendix A for additional detail. (2) Based on 2015 - 2019 CAGR, where 2015 is the base year, of U.S. total construction spend, U.S. non-residential construction spend, and European Union construction production. (3) See updated slides 8, 26 and 61 from our April 30th presentation attached hereto as Appendix A for additional detail. (4) GCP annual revenue excludes results from Darex Packaging Technologies (\"Darex Packaging\"), which was sold in July 2017 and GCP's Venezuelan operations (\"Venezuela\"), which GCP excludes from its adjusted financials because of Venezuela's currency devaluation.",
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      "text": "Despite the benefit of robust industry conditions and bolt-on M&A, GCP's revenue has declined since spin off.",
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      "text": "GCP Highlights Numerous Bolt-On M&A Transactions Yet Total Revenue Has Declined Since Spin-Off",
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