Jana Partners presses Cooper to replace CEO
Activist hedge fund Jana Partners is stepping up its campaign at medical-device maker Cooper Companies, calling for the replacement of chief executive Albert White and urging the company to consider strategic alternatives for its core businesses, according to a report by the Wall Street Journal.
Activist hedge fund Jana Partners is pressuring medical-device firm Cooper Companies to replace CEO Albert White and consider strategic options for its core businesses, according to the Wall Street Journal. In a letter to Cooper on Thursday, Jana outlined its demands, arguing that the company requires a significant overhaul following a period of underperformance.
The hedge fund is requesting the appointment of a new chief executive and board chair, engagement with potential buyers for the CooperVision contact-lens business, and consideration of selling its fertility and other medical-device operations within CooperSurgical. Albert White has been Cooper's CEO since 2018. The activist argues that Cooper has faced challenges with inventory management and capital allocation, and believes changes at the leadership and board levels are necessary to address these issues.
Jana's involvement with Cooper has escalated since the fund built a stake in the company about a year ago. Jana had previously advocated for strategic options, including a potential combination of CooperVision with rival Bausch + Lomb. Cooper's market capitalization stands at approximately $10 billion, following a 16% decline in its shares over the past year, and a 28% drop since Jana first disclosed its investment, as reported by the Wall Street Journal.
Cooper operates two main businesses: CooperVision, which manufactures contact lenses and provides vision-care products, and CooperSurgical, which supplies products and services focused on women's health and fertility. Jana's latest demands indicate the activist sees potential value in separating or reshaping the company's businesses rather than maintaining the current structure.
This campaign follows Cooper's recent third-quarter results and announcement of expanding its US sales operation to cover an additional 5,000 eye-care offices. If Cooper does not agree to Jana's proposals, the activist could pursue a proxy contest, with the deadline for director nominations expected in early January, giving both sides several months to negotiate or prepare for a potential shareholder vote.
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