March 24, 2015
After a fairly heated battle, albeit a relatively short one, FrontFour Capital prevailed against OM Group (NYSE: OMG) this week. The small activist fund managed to get two of its three candidates on OM's board.
It'll be adding FrontFour founder David Lorber and the A. Schulman Inc chair, Joe Gingo. What's more is that after the annual meeting, OM Group will also add the FrontFour's other board candidate as a director, Allen Spizzo.
FrontFour went active back in January and shares are flat since then. One of FrontFour's theses was that OM Group should put itself up for sale. The other thesis is that OM Group can cut over $50mm from its cost structure -- and for a company generating $98mm in EBITDA, that's pretty significant. These cost cuts could come from executive compensation and corporate overhead.
Previous FrontFour-OM Group coverage:
Originally posted at stockpucker, here