A prominent activist investor has reportedly acquired a substantial stake in industrial gas supplier Air Products — and is poised to push for changes at the company.
The Wall Street Journal first reported that Mantle Ridge, the activist firm founded by Paul Hilal in 2016, had built a stake worth more than $1 billion in the Pennsylvania gas provider.
Sources familiar with the matter told the paper that the firm believes Air Products’ stock price should be higher relative to its peers, and that it intended to seek changes in its spending and strategy — including a path toward a new chief executive. Seifi Ghasemi, Air Products’ CEO for more than a decade, is 80 years old and one of the oldest top executives among companies on the S&P 500 index.
Mantle Ridge has historically focused on one or two companies at a time, unlike other activist firms. The company previously held stakes in railroad CSX, discounter retailer Dollar Tree and foodservice company Aramark.
Air Products has come under fire from analysts for some of its recent decisions, and in July announced an agreement to sell its liquefied natural gas process business to Honeywell.
An Air Products spokesperson told the Journal that the company does not comment on its discussions with “specific firms or individuals.” The company’s stock price reportedly climbed by nearly 6% in after-hours trading following the report.
