Advance Auto Parts reaches deal with Dan Loeb's Third Point, Saddle Point for three board seats
- Dan Loeb's Third Point and activist Saddle Point have a stake in Advance Auto Parts and reached a settlement with the company that will give the activists three board seats.
- Tom Seboldt, Gregory Smith and Brent Windom will join Advance Auto Parts' board effective immediately.
- The auto parts provider has seen its stock slide since 2022 and cut its forecast and dividend after being hit by elevated material, labor and transport costs.
Dan Loeb's Third Point and activist Saddle Point have a stake in Advance Auto Parts and reached a settlement with the company that will give the activists three board seats, the company confirmed Monday.
The size of the stake was not immediately clear, but a person familiar with the matter said Third Point built it earlier this year.
Tom Seboldt, Gregory Smith and Brent Windom will join Advance Auto Parts' board effective immediately, the company said. The auto parts provider appointed a new CEO, Shane O'Kelly, in August.
"We look forward to benefiting from our new directors' extensive industry relationships and experience," O'Kelly said in a release.
Advance Auto Parts shares rose 3.7% after The Wall Street Journal reported the news of Third Point's position and settlement.
The company's stock reached an all-time high in 2022 but has suffered since then, cutting its forecast and dividend after being hit by elevated material, labor and transportation costs.
Advance Auto Parts previously saw Starboard Value take a stake and push for change in 2015, which was similarly resolved with a settlement.
"With fresh perspectives in the C-suite and board room and a long runway for growth, we believe Advance is well-positioned to create meaningful value for shareholders," Third Point's Loeb said.
Roy Katzovicz, Saddle Point CEO and former Pershing Square partner, said Advance Auto Parts had "enormous potential."