The activist investor William A. Ackman has had a bruising year, but with one investment, Air Products and Chemicals, he now has something to show for his effort.
Air Products, a producer of industrial gases, announced on Thursday morning that it would add three new directors to its board and begin a search for a new chief executive. The changes were supported by Mr. Ackman, whose firm, Pershing Square Capital Management, acquired a 9.8 percent stake in the company this year.
The current chief executive and chairman, John E. McGlade, will retire next year, the company said on Thursday. He will remain at the helm of the company during a search process led by a newly formed committee of the board, and then will continue as chairman during a transition period in 2014, the company said, adding that the incoming chief would also join the board.
“As I approach age 60 and the board plans for my retirement, the actions our board is announcing today will ensure an orderly leadership transition,†Mr. McGlade said in a statement. “We have had a constructive dialogue with Pershing Square, our largest shareholder, and are pleased they are supportive of the actions our board is announcing today for the benefit of all Air Products shareholders.â€
Mr. Ackman’s investment in Air Products, valued at about $2.2 billion in July, is the largest his firm has made. The company, based in Allentown, Pa., reported about $10 billion of revenue and $1.5 billion in operating income in 2012 but has lagged its rivals in stock price performance in recent years.
“We invested in Air Products because it is a great business in an industry with excellent long-term prospects,†Mr. Ackman said in a statement on Thursday. “In recent weeks, we have been delighted to get to know John and the rest of the board working with them on their mission of continuous improvement and long-term shareholder value creation.â€
The three new directors, who will join the board immediately, bring experience in chemicals and industry. One of them, Seifi Ghasemi, is the chairman and chief executive of Rockwood Holdings, a specialty chemicals company.
Edward L. Monser, another new director, is the president and chief operating officer of Emerson Electric, an industrial controls products company. The third new director is Matthew Paull, the retired chief financial officer of the McDonald’s Corporation.
Mr. Monser and Mr. Paull will stand for election at Air Products’ annual meeting next year, the company said, while Mr. Ghasemi will stand for election in 2015. Pershing Square has agreed to support the company’s slate of nominees at next year’s annual meeting, the company said.
With three directors being added, three existing directors will retire before the annual meeting next year, the company said.
