Mill Road Capital Reached an Agreement with Natural Gas Services Group (NGS)
Key Summary: On April 28, 2023, Natural Gas Services Group agreed to appoint Mill Road Capital's nominees, Justin C. Jacobs and Donald J. Tringali, to its Board following a March 2023 nomination letter.In late 2022 and early 2023, Hoak Public Equities (9.3%) urged the Board to halt the CEO search, review strategic alternatives, target $75-100M EBITDA, and adopt a dividend policy.Hoak also recommended adding board members with substantial financial stakes in the company.
Market Cap: $128 million | Natural Gas Services Group, Inc. provides natural gas compression services and equipment to the energy industry in the United States.
- On March 10, 2023, Mill Road Capital sent a letter to the company expressing its intention to nominate two directors for election to the Board at the 2023 AGM.
Update
- On April 28, 2023, the company entered into a Cooperation Agreement with Mill Road Capital. Pursuant to the agreement, the company agreed to appoint Justin C. Jacobs and Donald J. Tringali (Mill Road Capital nominees) to its Board.
Past
- On December 29, 2022, Hoak Public Equities (9.3%) sent a letter to the Board urging it to cease any search process for a new CEO and to commence a review of strategic alternatives. In its letter, it expressed the belief that the company needed to identify a near-term plan to achieve at least $75-100 million of EBITDA, utilize a prudent level of debt to generate better equity returns, and implement an industry-standard dividend policy.
- On January 11, 2023, Hoak Public Equities (9.3%) sent another letter to the Board emphasizing the desirability of adding qualified board members with a larger financial interest in the company. The letter also reiterated its recommendation that the Board cease the CEO search process and commence a review of strategic alternatives.
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