The agreement between the two has Icahn adding new members to Newell Brands Inc’s Board of Directors. These new directors are Patrick Campbell, Brett Icahn, Andrew Langham and Courtney Mather. Icahn will also be nominating Judith Sprieser and one other independent director for election at NWL’s 2018 Annual Meeting.
Newell Brands Inc also points out that the agreement between it and Icahn will have Patrick Campbell taking over as its Chairman of the Board. Campbell and the new Board members will serve alongside current Board members James Craigie, Debra Crew, Michael Polk, Steven Strobel and Michael Todman.
The deal will also have Carl Icahn backing the company’s nominees for the 2018 Annual Meeting of Stockholders with all of his votes. Icahn Enterprises LP currently owns 6.9% of Newell Brands Inc’s stock.
Newell Brands Inc says that it will also be expanding its accelerated transformation plan. It is planning for additional divestiture opportunities that will bring the total yield of the plan to $10 billion after taxes.
Newell Brands Inc notes that the agreement between it and Carl Icahn will include having the company’s Finance Committee oversee its transformation plan. The Finance Committee will be lead by Courtney Mather and will handle the current plans and the expansions mentioned above.
“The company is significantly undervalued today, and I believe this new Board will help the management team generate significant value for shareholders, first through an expanded transformation plan and then through strengthened underlying performance,” Icahn said in a statement.
NWL stock was down 6% and IEP stock was down slightly as of noon Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.