Activist Investor Secures Board Seats at Air Products
A Decade-Long Battle Comes to a Head
In a major victory for activist investor Mantle Ridge, the firm has secured enough support from Air Products and Chemicals investors to win several seats on the industrial gases company’s board of directors. This outcome marks the culmination of a fiercely contested board battle that has been brewing for months.
A Call for Change
Mantle Ridge, led by Paul Hilal, has been pushing for significant changes at Air Products, including the development of a succession plan for CEO Seifi Ghasemi, a reassessment of the company’s capital allocation, and a scaling back of risky projects. The investment firm nominated four candidates to the nine-member board, arguing that fresh perspectives were needed to drive growth and improvement.
Proxy Advisory Firms Weigh In
Three influential proxy advisory firms sided with Mantle Ridge, recommending that investors elect at least three of the activist investor’s candidates. This endorsement was seen as a significant boost to Mantle Ridge’s campaign, as the firms’ recommendations often carry significant weight with investors.
Investor Support
Several large investors, including Norway’s sovereign wealth fund Norges Bank Investment Management, have pledged their support for Mantle Ridge’s nominees. This backing has been instrumental in securing the necessary votes to win seats on the board.
A Familiar Face
For Paul Hilal, this victory marks a significant milestone in his career as an activist investor. Hilal was instrumental in shaping Air Products’ board over a decade ago, when he worked with hedge fund Pershing Square Capital Management to install new directors, including CEO Seifi Ghasemi. Since founding his own firm in 2016, Hilal has led successful campaigns at several major companies, including CSX, Aramark, and Dollar Tree.
A New Era for Air Products
With Mantle Ridge’s nominees set to join the board, Air Products is poised to enter a new era of leadership and direction. The company’s investors will be watching closely as the new board members work to implement the changes that Mantle Ridge has been advocating for. One thing is certain: this outcome marks a significant shift in the balance of power at Air Products, and could have far-reaching implications for the company’s future.
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