Gamco increased its stake after securing a Board seat in Eastern Co (EML)
Key Summary: Eastern Co. (M.Cap: $171mm) manufactures industrial hardware and metal products. Gamco secured a Board seat in 2016 and steadily increased its stake, reaching 18.72% by March 2019. Earlier, Barington and Minerva Advisors had also been involved in board nominations and advocating for strategic changes.
Market Cap: $171mm | The Eastern Company is engaged in the manufacture and sale of industrial hardware, security products, and metal products from six United States operations and seven wholly owned foreign subsidiaries.
- On January 16, 2015, Minerva Advisors disclosed a 6% stake and stated that it was disappointed the company rejected a $6.69/share cash + $12.43 in shares bid from Synalloy Corporation. It also expressed its belief that the company should hire an investment bank to examine a sale or substantial changes to its capital structure. Source
- On February 23, 2015, Barington nominated two candidates to the board. At the AGM held on May 20, 2015, Barington’s nominees were elected. Source
- On September 14, 2015, Barington increased its stake from 4.59% in September 2014 to 8.82%.
- On December 21, 2015, the company appointed Barington’s representative as Chairman of the Board, effective January 1, 2016.
- On December 28, 2015, Gamco (holding 14.36%) stated that it was evaluating all options to submit shareholder proposals and director nominations at the 2016 annual meeting.
- On February 16, 2016, the company announced that it approved the nomination of Gamco’s representative to the Board. Gamco held 14.44%. Source
- On April 27, 2016, Gamco’s representative was elected to the Board.
- On April 7, 2017, Gamco increased its stake to 17.67%.
- On March 22, 2019, Gamco increased its stake to 18.72%.
Member discussion