Jana will do anything for the election campaign
2022.12.09 12:24
Jana will do anything for the election campaign
Budrigannews.com – Freshpet (NASDAQ:) is being pushed by an activist investor. According to people familiar with the situation, Inc to consider selling itself is putting more pressure on the pet food company by hiring industry expert Kurt Schmidt to help with its campaign and possibly run for director.
Schmidt has recently joined a group of advisers that also includes a former Kraft Foods (NASDAQ:) executive. In September, Jana Partners LLC reported owning a 9.9% stake. sources, who were not permitted to discuss the private matter, stated that the chief financial officer was a former Jarden Corp. CEO.
The move comes after Freshpet hired Bank of America (NYSE:) and at a time when the sector is very interested in making acquisitions. to look at strategic options, like a possible sale, according to two people who were familiar with the hiring.
Freshpet’s representative declined to comment, and Bank of America’s representative did not immediately respond to a request for comment.
Schmidt was the chief executive officer of Blue Buffalo, a premium pet food brand that was acquired by General Mills Inc. (NYSE:). in 2017. Campbell Soup (NYSE:) employs Schmidt as a director at the moment. Co, who joined the board as part of a settlement with Third Point LLC, a hedge fund, in 2018.
Schmidt has assisted Campbell Soup in appointing a new chief executive officer and overseeing other portfolio changes.
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In addition to looking into a sale, Jana Partners wants Freshpet to think about operational changes and improving how it allocates capital, but it hasn’t said if it plans to nominate directors for a possible proxy fight.
Only a few weeks after Mars announced the purchase of Champion Petfoods, which left Freshpet as the only large independent pet food business in North America, the activist group is increasing its pressure on the company. According to two sources, Champion Petfoods’ sales process was highly competitive and drew significant strategic interest.
Freshpet has experienced a roller coaster over the past two years. After a string of earnings misses, operational errors, and the departure of its chief financial officer in September, the stock price fell 79% to less than $39 a share in September 2022 from its record high of $185 in 2021. In November, the company appointed a new chief financial officer.
Since Jana disclosed its stake in Freshpet in a regulatory filing, the stock price has increased by more than 50%. Barry Rosenstein’s hedge fund has previously advocated for changes at Whole Foods Market, which was sold to Amazon.com Inc. (NASDAQ:). 2017 saw the sale of Pinnacle Foods to Conagra Brands (NYSE:) and in 2018.
