#United States #New York #Air Products #Mantle Ridge #Corporate Governance

Mantle Ridge Takes Action Against Air Products

In a significant move within the corporate governance sphere, Mantle Ridge LP, a prominent investment firm, has officially filed a detailed proxy statement focusing on Air Products and Chemicals Inc. This action underscores the firm’s growing frustrations regarding perceived substantial underperformance and flawed capital allocation strategies at Air Products. The move comes as Mantle Ridge engages in a larger campaign urging fellow shareholders to support their governance changes during the upcoming 2025 Annual Meeting.

Mantle Ridge, which holds an impressive stake of around $1.3 billion in Air Products’ shares, has publicly criticized the current leadership, particularly highlighting CEO Seifi Ghasemi's decisions to invest in unspecified large-scale projects that do not align with the core operations of the company. According to Mantle Ridge, these ventures have not only increased financial risks but have also led to a significant erosion of shareholder value. In light of these concerns, Mantle Ridge is advocating for a change in the board's leadership.

As part of their campaign, Mantle Ridge has announced the nomination of four highly qualified candidates to join Air Products’ Board of Directors. These nominees include Andrew Evans, Paul Hilal, Tracy McKibben, and Dennis Reilley. Mantle Ridge firmly believes that the expertise and experience these individuals bring will be crucial for restoring performance levels, addressing past misallocation of capital, and providing robust leadership in the future. Mantle Ridge argues that the incumbent directors, who allowed the current trajectory under Ghasemi to continue, should not be permitted to select the forthcoming leadership.

The investment firm has launched a campaign site, www.RefreshingAirProducts.com, to detail its case and engage with shareholders directly. The site serves as a platform for Mantle Ridge to outline its perspectives on the necessary changes at Air Products and to encourage investors to vote in favor of their proposed nominees using the BLUE Proxy Card.

Further emphasizing their stance, Mantle Ridge has communicated strong preferences urging shareholders to vote ‘FOR’ their director nominees while withholding votes from several current directors at Air Products, including Ghasemi. This strategic move suggests an assertive shift in shareholder activism, focused squarely on enhancing accountability and operational performance within the company.

Paul Hilal, the founder of Mantle Ridge, noted, "Our commitment is to work closely with the board and management to foster long-term, sustainable practices that generate shareholder value. We are optimistic that with renewed governance, Air Products can regain its footing and thrive."

In recent years, shareholder activism has gained traction across various industries, with investors increasingly stepping into roles as custodians of company performance and governance. This incident involving Mantle Ridge and Air Products is indicative of a larger trend where significant stakeholders demand transparency and rational financial decision-making, thus pushing for systemic improvements.

As Mantle Ridge prepares for the upcoming annual meeting, observers will closely watch how these developments unfold, including the responses from current directors and the broader implications for Air Products’ strategy and shareholders.

In conclusion, this confrontation between Mantle Ridge and Air Products serves as a poignant reminder of the critical nature of corporate governance and the roles investors play in advocating for better operations and performance metrics. Shareholders will need to stay informed and engaged as the backdrop of this situation continues to evolve heading into 2025.

For more information and updates on the proxy contest, keep an eye on the official Mantle Ridge communication channels and the new campaign website.