Advance Auto Parts, Inc. (NYSE: AAP) has announced the appointment of three new independent directors to its board, along with entering into a cooperation agreement with Third Point LLC and Saddle Point Management, L.P. The company has emphasized the new directors' automotive industry and supply chain experience in its plan to return to profitable growth and create long-term value for shareholders.
The three newly appointed directors bring a wealth of industry expertise to the company. A. Brent Windom, with nearly four decades of experience in the automotive sector, most recently served as President and CEO of Uni-Select Inc. Gregory L. Smith, a proven supply chain expert, currently serves as Executive Vice President, Global Operation and Supply Chain of Medtronic PLC. Thomas W. Seboldt, a seasoned automotive executive with over three decades of industry experience, spent the majority of his career with O’Reilly Automotive, Inc.
According to the press release, Advance Auto Parts has been focusing on operational initiatives, consolidating its supply chain to a single unified network, and improving its competitive position to better serve customers. This strategic direction has been underscored by the company's emphasis on ongoing board refreshment to ensure the right expertise and experience are in place to oversee its strategy.
The company's board will temporarily expand to 12 directors with the recent appointments, and at the 2024 annual meeting scheduled for May 22, 2024, 11 director nominees are expected to stand for election to the board. The full cooperation agreement, which includes customary standstill, voting, and other provisions, will be filed by the company with the U.S. Securities and Exchange Commission as an exhibit to a current report on Form 8-K.
The company's emphasis on driving long-term value for shareholders is evident through these strategic appointments and its ongoing operational initiatives. As Advance Auto Parts continues to navigate its path to profitable growth, the new directors' extensive industry relationships and experience are expected to play a pivotal role in shaping the company's future.
In addition, Legion Partners Holdings, LLC, another shareholder of Advance Auto Parts, has indicated its support for the additions of Mr. Windom, Mr. Smith, and Mr. Seboldt to the company’s board of directors, underscoring broader shareholder support for the changes.
Advance Auto Parts, Inc. operates as a leading automotive aftermarket parts provider, serving both professional installer and do-it-yourself customers. As of December 30, 2023, the company operated 4,786 stores and 321 worldpac branches primarily within the United States, with additional locations in Canada, Puerto Rico, and the U.S. Virgin Islands. The company also served 1,245 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean islands. Following these announcements, the company's shares moved 4.0%, and are now trading at a price of $78.77. If you want to know more, read the company's complete 8-K report here.
