Barington Capital Group Proposes Value-Enhancing Strategy for TriMas Corporation (TRS)
Key Summary: Barington Capital Group (1%) advised TriMas Corporation on December 12, 2023, to sell Arrow Engine, improve Aerospace performance, and focus on Packaging to boost shareholder value by potentially increasing shares by $42-$54 over three years, a 65%-116% premium to the current share price, urging prompt board consideration. By July 29, 2024, dissatisfied with TriMas's +4.6% shareholder return, Barington proposed selling the Aerospace segment or the entire company to address the valuation discount, citing favorable market multiples for Aerospace sales and recent higher valuation multiples for similar firms.
Market Cap: $924 million | TriMas Corporation engages in the design, development, manufacture, and sale of products for consumer products, aerospace, and industrial markets worldwide.
- On December 12, 2023, Barington Capital Group (1%) sent a letter to TriMas Corporation suggesting to enhance shareholder value by selling Arrow Engine, improving Aerospace performance, and focusing on Packaging as "New TriMas" or pursuing alternatives. It projects a potential $42-$54 per share value increase over three years, a 65%-116% premium to the current share price, and urge the board to consider its proposal.
- On July 29, 2024, Barington Capital Group expressed ongoing dissatisfaction with the company's stock performance and proposed two immediate actions to enhance shareholder value: selling the Aerospace segment or the entire company. Since their letter in December 2023, TriMas's shareholder return of +4.6% lagged behind peers and market indices. The Aerospace segment, with strong growth and attractive market multiples (13.6x NTM EBITDA), is seen as a valuable asset for sale. Alternatively, selling the entire company is suggested, noting recent acquisitions of similar firms at higher multiples (15.5x NTM EBITDA). Barington Capital urged the board to act promptly to address the significant discount in TriMas's valuation. Source
- On January 10, 2025, Barington Capital Group sent a letter to the Chairman of the Board criticizing the company's decision to search for a new CEO following Mr. Amato's transition and urging the Board to explore strategic alternatives instead. Citing TriMas' disappointing share price performance and the inefficiencies of its multi-segment structure, he argued that the Aerospace, Packaging, and Specialty Products segments lack the scale to succeed independently in the public market. Barington Capital recommended that the Board hire a financial advisor to evaluate options, including divesting segments or selling the entire company, to maximize shareholder value, referencing similar successful actions by peers like SPX FLOW and Aerojet Rocketdyne.
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