Activist hedge fund Browning West has escalated pressure on Cooper Cos, urging the $14bn contact lens and women’s health products group to appoint four new directors or face a full proxy contest, according to a report by Reuters.
In a letter made public on Wednesday, Browning West – which owns roughly 4% of Cooper – said the company requires “urgent change” at board level to restore shareholder confidence and reverse a 28% share-price slide over the past year. The fund argues Cooper’s board lacks adequate expertise in vision care, manufacturing and medical devices, weakening oversight and strategic discipline.
The Los Angeles-based activist is proposing three seasoned industry operators – Walter Rosebrough (ex-Steris CEO), Joseph Papa (former Bausch + Lomb CEO) and Andrew Pawson (ex-Alcon senior executive) – plus Browning West partner Faraz Athar, who would add an investor lens. The fund is also pushing for Rosebrough to replace current chair Robert Weiss.
Browning West believes the stock could double within three to four years if its reforms are adopted, citing misaligned compensation, weak strategic focus and insufficient governance as key sources of value leakage. It also hinted at support for strategic alternatives, saying it sees “no strategic or financial logic” in combining the CooperVision and CooperSurgical divisions under one corporate umbrella.
The move marks the second activist campaign at Cooper in a month, following Jana Partners’ call for a broader strategic review that could include a sale. While Jana is pushing from the outside-in, Browning West is seeking internal restructuring, but warned it will not tolerate unilateral board or management changes without its involvement.
Browning West has a track record of successful campaigns, including its sweeping board overhaul at Gildan Activewear last year.
