Cruiser Capital wins three seats on American Vanguard's board

American Vanguard

01/06/2022 22:29

BOSTON, June 1 (Reuters) - American Vanguard Corp  AVD.N 
investors on Wednesday elected all three of Cruiser Capital's
candidates to the nine-member board of directors, handing a
victory to the hedge fund that had criticized management of
hefty spending that hurt returns.
    Cruiser Capital, which owns 2.5% of the agricultural
products company, appealed to investors that the board needed
fresh blood after a decade during which profits had not grown
but management had continued to spend on acquisitions.
    Preliminary vote tallies show investors elected Patrick
Gottschalk, Mark Bassett and Keith Rosenbloom, Cruiser Capital's
founder and portfolio manager, as directors.
    Cruiser noted that chief executive officer Eric Wintemute
has held the position since 1994.
    The company previously said the three directors whose seats
were being challenged were "instrumental" to the company's
strategic direction and that their experience "outweighs" the
experience of the Cruiser nominees.
    The proxy advisory firms backed Cruiser Capital with their
recommendations.
    "Today’s vote is a clear signal that stockholders want to
see meaningful change at American Vanguard and are ready for
fresh perspectives to be heard in the boardroom," Rosenbloom
said in a statement.
    A representative for the company did not immediately respond
to a request for comment.

 (Reporting by Svea Herbst-Bayliss; Editing by David Gregorio)
 ((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))