Sharpie pens maker Newell Brands (NYSE: NWL) will appoint four directors to its board picked by billionaire investor Carl Icahn the company said on Monday.
The news comes just days after Icahn disclosed a 6.9% stake in Newell and said he could seek a board seat at the consumer products company.
Newell has been facing pressure from another activist shareholder, Starboard Value, which wants to replace Newell's CEO and its entire board, arguing that Newell has underperformed since buying Jarden Corp in 2016.
Newell said the company and Icahn are aligned on company strategy
Icahn has agreed to vote all of his shares in favor of Newell's nominees at the company's annual shareholder meeting.
Icahn's designated directors are Patrick Campbell, Brett Icahn, Andrew Langham and Courtney Mather. Campbell was appointed Newell's non-executive chairman.
In addition, Newell Brands announced today that it has expanded its accelerated transformation plan, which remains focused on creating a company that is simpler, faster and stronger.
The Company believes there are further accretive divestiture opportunities that will bring the total yield of the accelerated transformation plan to approximately $10 billion of after-tax proceeds (although the Company will only make divestitures at competitive market multiples).
The Company reiterated that it will continue to execute its strategic initiatives, including optimizing the portfolio to ensure focus on brands with attractive margins and growth potential in global categories, and driving operational efficiency and simplifying operations.
Shares in Newell added $1.28, or 4.5%, to $27.38
