Latest news with #boardrestructuring
Reuters
2 days ago
- Business
- Reuters
Medtronic plans to add two independent directors after Elliott takes large stake
Aug 19 (Reuters) - Medtronic (MDT.N), opens new tab said on Tuesday it would add two new directors to its board and set up committees to help boost its lagging shares, after activist investor Elliott Investment Management emerged as one of its largest shareholders. The medical-device maker said veteran med-tech executives John Groetelaars, once interim CEO for Dentsply Sirona (XRAY.O), opens new tab, and Bill Jellison, formerly CFO at Stryker (SYK.N), opens new tab, would join its board as independent directors. Medtronic also raised its full-year profit forecast for fiscal 2026 and said it expects a smaller hit of about $185 million from U.S. President Donald Trump's tariffs, versus the $200 million to $350 million it had previously expected. The company's finance chief, Thierry Pieton, said in a conference call that execution of mitigation efforts helped reduce the impact from tariffs. Shares of Medtronic, which have risen 16% so far this year, fell 5% in early trading. Edward Jones analyst John Boylan said investors may be disappointed in the unchanged fiscal-year 2026 sales growth forecast despite the company's strong first-quarter results. "Investors were hoping for more operating improvements and more sales growth than we got this quarter and in guidance," Boylan said. "Our decision to become one of Medtronic's largest investors was driven by our strong conviction that the company is entering a new chapter of exceptional value creation defined by accelerating growth, operational improvement and enhanced strategic clarity," said Elliott Partner Marc Steinberg. Elliott, which has not disclosed the value of its stake in the company, did not immediately respond to a Reuters request for the details. Medtronic said one of the new committees would seek tuck-in mergers and acquisitions, research and development investments and potential divestitures, while the other would look to boost earnings growth. The panels, to be led by CEO Geoff Martha, will include Groetelaars and Jellison. "We view these changes as an incrementally positive development for Medtronic," Leerink Partners analyst Mike Kratky said in a note, pointing to Elliott's track record of boosting share performance for companies such as Cardinal Health (CAH.N), opens new tab.
Yahoo
2 days ago
- Business
- Yahoo
Medtronic to add directors, form committees after Elliott takes large stake, WSJ reports
(Reuters) -Medtronic will add two new directors and form new committees, after Elliott Investment Management became one of its largest shareholders, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-07-2025
- Business
- Yahoo
Lamb Weston bows to pressure from Jana Partners with board revamp
Lamb Weston has bowed to pressure from shareholders Jana Partners and Continental Grain Co. by restructuring the potato-products supplier's board. The publicly listed US group said it will expand its board composition to 13 members from 11 previously, with four new directors appointed by Lamb Weston and another two mutually agreed by the French fries maker, activist investor Jana Partners and Continental Grain. Lamb Weston added the appointments will take place no later than 11 July. Jana Partners has been calling for a change in the company board's since it took a minority stake in Lamb Weston last year and had criticised the business for what it called "self-inflicted mis-steps" in terms of its performance. Those steps included profit warnings, inventory write-downs, plant closures and staff layoffs. As Jana Partners pressed for a change of leadership and/or a sale of Lamb Weston in December a new CEO was appointed in the form of Michael Smith. Both Jana Partners and Continental Grain expressed their satisfaction with the board changes in a joint statement with Lamb Weston yesterday (30 June). Scott Ostfeld, a managing partner and portfolio manager at the activist group, said: 'I look forward to working with the board and management to improve performance and deliver shareholder value.' Ari Gendason, the chief investment officer of Continental Grain, added: 'While substantial opportunity remains, today's announcement marks an important step in positioning Lamb Weston for long-term value creation. 'We are pleased to have reached this resolution and will continue to work constructively with Lamb Weston as it takes steps to enhance its near and long-term performance.' The new board appointees picked by Lamb Weston are Bradley Alford, Timothy McLevish, Scott Ostfeld and Ruth Kimmelshue. The mutually agreed members are Lawrence Kurzius and Paul Maass. Alford, a consumer goods veteran with experience at US food peer Conagra Brands and Swiss giant Nestlé, will take on the role of board chairman. Twelve of the new director picks will be independent. Meanwhile, Charles Blixt, WG Jurgensen, Robert Niblock, and Maria Renna Sharpe will step down from the board. The new board composition is set to be formalised at the company's 2025 annual general meeting, where the appointed directors will stand for election. Commenting on the board reshuffle, CEO Smith said: 'Following our constructive engagement with them [Jana Partners and Continental Grain] and taking into account perspectives gleaned from discussions with additional stockholders, we are confident this outcome is in the best interests of the company and all of our shareholders.' In February, Lamb Weston received an unsolicited offer from TRC Capital Investment to buy up to two million shares of the company. It also emerged in December that another US food peer of the company, Post Holdings, was reportedly interested in acquiring Lamb Weston. Post Holdings did not respond to Just Food's request for comment on the speculation at the time. Lamb Weston reported its latest results in April. Third-quarter net sales rose 4% to $1.52bn from a year earlier but net income was flat at $146m. Adjusted EBITDA climbed 6% to $363.8m. The company left its fiscal 2025 outlook unchanged, targeting net sales of $6.35bn to $6.45bn. Adjusted EBITDA was forecast at $1.17bn to $1.21bn. Adjusted net income was expected of $440m to $460m and adjusted diluted EPS at $3.05 to $3.20. "Lamb Weston bows to pressure from Jana Partners with board revamp" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
