US speciality food firm Lancaster Colony Corp. has managed to stave off the threat of investor anger at its next AGM after agreeing a deal with hedge fund shareholder Barington Group.
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A group of investors, led by Barington, have dropped plans to nominate candidates to join the Lancaster board – in return for the company pledging to name an independent director by next January.
Lancaster has also agreed to form a “task force” to work on improving its “operations, productivity and profitability”.
The company has looked to focus on the food industry in recent months, selling off its automotive operations.
Barington chairman, president and CEO James Mitarotonda said: “We look forward to working constructively with the company and its board to continue to create additional value for the shareholders of the company.”
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By GlobalDataLancaster chairman and CEO John Gerlach added: “We remain committed to continuing our ongoing efforts to improve the operations and financial performance of our Company and welcome the input of the Barington Group in this regard.”
In August, Lancaster saw annual profits slide on the back of mounting costs and a loss from the sale of its automotive operations.
The company, which makes foods including salad dressings and pies, booked underlying operating profit of $64.9m for the 12 months to the end of June. That compared to profit of $84.4m a year earlier.
