Having built a stake in Advance Auto Parts, activist hedge funds Third Point and Saddle Point Management have now secured three board seats at the firm as part of a “cooperation agreement” confirmed by the aftermarket car parts provider on Monday.
In a statement, Advance Auto Parts — which appointed new CEO Shane Kelly last August — said that Tom Seboldt, Gregory Smith and Brent Windom will join the company board “effective immediately”.
The full cooperation agreement, which contains customary standstill, voting and other provisions, will be filed by the company with the US Securities and Exchange Commission as an exhibit to a current report on Form 8-K. Additionally, Legion Partners Holdings, another Advance Auto Parts shareholder, has indicated its support for the additions of Seboldt, Smith and Windom to the company’s board of directors.
With the new appointments, Advance Auto Parts board will temporarily expand to 12 directors, with 11 nominees expected to stand for election at the company’s annual meeting on 22 May.
Daniel Loeb, CEO of Third Point, said: “These three directors bring essential operational experience and industry expertise to support Shane as he executes on an ambitious agenda.
“With fresh perspectives in the C-suite and board room and a long runway for growth, we believe Advance is well positioned to create meaningful value for shareholders.”
Roy Katzovicz, CEO of Saddle Point Management, added: “Advance has enormous potential to deliver better results for customers, suppliers, team members, and shareholders. The company’s collaborative and focused approach is a key enabling factor for success.”
