SHLM -Will they reconsider?
A. Schulman CEO to retire; company to consider sale
Published: Friday, November 16, 2007, 9:23 AM Updated: Saturday, November 17, 2007, 6:35 PM
Terry L. Haines, chief executive officer of Akron-based A. Schulman Inc. (Nasdaq: SHLM), will retire by March 1, ending a 42-year career with the producer of plastic resins and compounds.
The company also will begin exploring strategic alternatives that include a potential sale, accoarding to a statement issued Friday morning by the company and Barington Capital Group L.P., a New York-based hedge fund with a 9 percent ownership stake in A. Schulman.
Haines and the company have "identified a highly qualified candidate and are negotiating with that individual to assume the CEO position," the statement said.
"My entire adult life has been devoted to A. Schulman and its stockholders and I have enjoyed a wonderful relationship with our board of directors and the employees of our company," Haines said in the statement. "... I have rarely imagined life after A. Schulman, but it is the right time to begin that life."
Haines's departure comes as the company faced increasing pressure from Barington and another New York hedge fund to put the company up for sale. A. Schulman is a 2,500-employee company with 17 manufacturing facilities in North America and Europe. Its revenues for the fiscal year ended Aug. 31 were $1.8 billion.
Barington waged a fight last year and ended up earning a seat on the company's board for its CEO, James Mitarotonda. This year, Ramius Capital Corp. pledged to field a slate of four candidates for seats on A. Schulman's 12-member board at the company's Jan. 10 annual meeting. Ramius owns a little over 7 percent of the company.
Just recently, Barington sought a list of stockholders from the company along with records on how directors and executive officers were using corporate assets.
As part of the announcement of Haines' exit, the company also said it has reached an agreement with Barington on directors to be nominated at the annual meeting. The hedge fund will back the company's slate of directors at the annual meeting, including Haines and Mitarotonda, incumbent director James A. Karman and a nominee to be made by Barington.
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