Ancora Advisors reduced its stake after securing board seats in Forward Air Corp (FWRD)
Key Summary: Ancora Advisors, holding a 6.4% stake at its peak, pushed for changes at the company, including board expansion, senior management strengthening, divestitures, and governance enhancements. They nominated four directors in 2021, advocating for a cost rationalization plan to improve margins. Following disappointing earnings, Ancora entered a cooperation agreement on March 15, 2021, leading to the addition of five new board members. By February 2022, Ancora reduced its stake to 4.99%.
Market Cap: $2.7 billion | Forward Air Corporation (FWRD) operates as an asset-light freight and logistics company in the United States and Canada.
- On December 28, 2020, Ancora Advisors disclosed a 5.3% active stake in the company and stated that it had engaged, and intends to continue to engage, in discussions with the board and management team regarding means to create shareholder value.
- On February 10, 2021, Ancora Advisors (6.3%) issued an open letter to shareholders and announced that it had nominated a slate of four candidates for election to the board at the company 2021 AGM.
- Ancora Advisors stated that its slate includes Forward Air's founder, Scott M. Nis wonger, former CFO, well-respected industry executive Andrew C. Clarke, and share holder representative James Chadwick of Ancora, and executive leadership specialist Dawn Garibaldi. - Ancora believes that the company can execute on what it believes to be a >1,000 bps margin improvement opportunity focused primarily on the core Expedited LTL business, which will be accomplished through a cost rationalization plan and targeted organic growth initiatives.
- Ancora’s plan: (i) strengthen senior management team, (ii) rationalize core Expedited LTL business, (iii) optimize capital allocation strategy, (iv) pursue non-core business divestitures, and (v) elect new representatives and enhance corporate governance.
- On February 16, 2021, Ancora Advisors issued an open letter to shareholders commenting on the company's disappointing fourth-quarter 2020 earnings report and addressing certain misleading statements made by the company in its February 10, 2021 press release. Update: On March 15, 2021, Ancora Advisors (6.4%) entered into a cooperation agreement with the company, and pursuant to it, the company agreed to increase the size of the board by five (5) directors and appoint Richard H. Roberts, Scott M. Niswonger (the "Ancora Appointees"), Chitra Nayak, Javier Polit, and George S. Mayes as directors with terms expiring at the 2021 AGM.
- On February 16, 2022, Ancora Advisors reduced its stake to 4.99%.
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