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Jana Partners Calls for New CEO at Cooper, Urges Sale of Core Businesses
Activist investor Jana Partners is pressuring medical-device maker The Cooper Companies to oust its chief executive and explore a potential sale of its core contact-lens business. The demands were detailed in a letter sent to Cooper's board, The Wall Street Journal reported on Friday, citing a copy it had reviewed.
A Push for a Strategic Overhaul
In the letter sent Thursday, Jana Partners called for a significant overhaul at Cooper, which had a market capitalization of approximately $10 billion at the close of trading that day. The activist fund's key demands include:
- Replacing CEO Albert White, who has led the company since 2018.
- Appointing a new board chair.
- Engaging with potential buyers for its CooperVision contact-lens business.
- Considering a sale of its CooperSurgical fertility and medical-device assets.
Jana attributed its demands to what it described as Cooper's "chronic underperformance," as well as deficiencies in inventory management and capital spending, according to the Journal's report.
Market Context and Background
AdThe activist push comes after a prolonged period of share price decline. Cooper's shares have fallen about 16% over the past year. This latest move from Jana follows a year-long engagement after building a stake in the company.
Jana previously urged Cooper to consider a combination of its contact-lens division with rival Bausch + Lomb. The Journal noted that Cooper's shares have fallen 28% since that initial push. The renewed pressure follows Cooper's third-quarter earnings report, in which the company announced an expansion of its U.S. sales force.
Potential Proxy Fight Looms
Jana Partners' campaign could escalate into a proxy fight for board seats if its demands are not met. The window for nominating new directors closes in early January, according to FactSet data cited by the Journal. Jana has a history of launching activist campaigns at other public companies, including financial technology firm Fiserv earlier this year.
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