Air Products & Chemicals, Inc. - APD STOCK NEWS

Mantle Ridge LP, owning $1.3 billion in Air Products (APD) shares, released a presentation highlighting urgent need for change in APD's Board following years of underperformance. The investor criticizes APD's industry-worst five-year TSR (+50%) compared to peers Linde (+171%) and Air Liquide (+93%).

The presentation details concerns about CEO Seifi Ghasemi's leadership, including capital allocation to high-risk, low-return projects, poor execution, and resistance to succession planning at age 80. Mantle Ridge proposes four director nominees and suggests Eduardo Menezes as CEO, believing APD could be worth over $425 per share under better leadership.

Air Products' (NYSE:APD) Board has issued a letter to shareholders addressing Mantle Ridge's campaign ahead of the January 23, 2025 Annual Meeting. The Board emphasizes the company's industry-leading adjusted EBITDA margin of over 40% and its strong position in atmospheric gases and hydrogen supply. The company highlights its 42 consecutive years of dividend increases, with approximately $1.6 billion in dividend payments in fiscal year 2024.

The Board criticizes Mantle Ridge's reduced slate of nominees from nine to four, viewing it as a threat to the company's two-pillar growth strategy. Air Products argues that Mantle Ridge, holding only 1.8% of common stock, lacks a concrete long-term plan and has a history of value destruction in previous campaigns. The company defends its current leadership and succession planning while warning against Mantle Ridge's attempt to replace key executives including Chairman and CEO Seifi Ghasemi.

Mantle Ridge LP, holding approximately $1.3 billion of Air Products and Chemicals (NYSE: APD) shares, has filed a definitive proxy statement nominating four director candidates for the company's 2025 Annual Meeting. The activist investor criticizes CEO Seifi Ghasemi's leadership, citing material underperformance and questionable capital allocation decisions.

The four nominees - Andrew Evans, Paul Hilal, Tracy McKibben, and Dennis Reilley - are proposed to address concerns about large-scale speculative non-core investments that Mantle Ridge believes have increased shareholder risk and destroyed value. The firm urges shareholders to vote using the BLUE proxy card for their nominees and withhold votes from current board members Charles Cogut, Lisa A. Davis, Seifollah Ghasemi, and Edward L. Monser.

Mantle Ridge LP, owning over $1 billion in Air Products and Chemicals (NYSE: APD) shares, issued a statement addressing reports of a 2.3% stock price drop in pre-market trading. The decline was attributed to speculation about Mantle Ridge withdrawing its board overhaul push.

The activist investor clarified their continued commitment to board restructuring, proposing four new director nominations alongside the company's two nominations, resulting in six new independent directors out of nine total board members. Their plan includes replacing four existing directors and initiating a process to replace the current CEO.

Mantle Ridge emphasized that this board reconstruction was initiated independently due to lack of collaborative engagement from the current board, while considering shareholder preferences for change.

Air Products (NYSE:APD) has filed its definitive proxy statement for the 2025 Annual Meeting, highlighting its successful execution of a two-pillar growth strategy. The company emphasizes its position as the most profitable industrial gas business globally, with industry-leading adjusted EBITDA margins and EPS growth.

The company is advancing its clean hydrogen initiatives, citing a market opportunity exceeding $600 billion by 2030. A recent 15-year contract with TotalEnergies for 70,000 tons of green hydrogen annually demonstrates market traction. The NEOM green hydrogen project is 70% complete, with 35% of production contracted.

The board is conducting a CEO succession search, expecting to announce a new President by March 31, 2025. The company is responding to Mantle Ridge's attempt to gain board control, despite holding only a 1.8% stake.

Air Products (NYSE: APD) has announced that their Chairman, President and CEO Seifi Ghasemi will be presenting at the Goldman Sachs Industrials & Materials Conference. The presentation is scheduled for Thursday, December 5, 2024, at 10:00 a.m. ET. Interested parties can access the session through Air Products' Investor Relations Event Details website.

Air Products (NYSE:APD) has announced its quarterly dividend declaration. The company's Board of Directors has approved a dividend of $1.77 per share of common stock. Shareholders who are on record as of January 2, 2025, will receive the dividend payment on February 10, 2025.

Air Products (NYSE:APD) issued a statement on Nov. 19, 2024, regarding Mantle Ridge's nomination of director candidates for election to the Air Products Board of Directors at the Company's 2025 Annual Meeting.

The company's Board of Directors has received Mantle Ridge's nomination notice and director nominees. The Board will provide a formal recommendation on the nominees in the proxy materials to be filed with the SEC in due course. Air Products shareholders are not required to take any action at this time.

Air Products (NYSE:APD) announced plans to nominate two new independent directors, Bob Patel and Alfred Stern, for election at the 2025 Annual Meeting of Shareholders. Patel, former CEO of W.R. Grace and LyondellBasell, brings 35 years of global chemicals industry experience. Stern, current CEO of OMV Group, contributes 29 years of experience in energy and chemicals sectors. These nominations are part of the company's board refreshment initiative, as David H.Y. Ho and Matthew H. Paull will not seek re-election. Following these changes, the board will maintain nine Directors, with six appointed in the last five years.