BOSTON (Reuters) – American Vanguard Corp investors on Wednesday elected all three of Cruiser Capital’s candidates to the nine-member board of directors, handing a victory to the hedge fund that had criticized management of hefty spending that hurt returns.
Cruiser Capital, which owns 2.5% of the agricultural products company, appealed to investors that the board needed fresh blood after a decade during which profits had not grown but management had continued to spend on acquisitions.
Preliminary vote tallies show investors elected Patrick Gottschalk, Mark Bassett and Keith Rosenbloom, Cruiser Capital’s founder and portfolio manager, as directors.
Cruiser noted that chief executive officer Eric Wintemute has held the position since 1994.
The company previously said the three directors whose seats were being challenged were “instrumental” to the company’s strategic direction and that their experience “outweighs” the experience of the Cruiser nominees.
The proxy advisory firms backed Cruiser Capital with their recommendations.
“Today’s vote is a clear signal that stockholders want to see meaningful change at American Vanguard and are ready for fresh perspectives to be heard in the boardroom,” Rosenbloom said in a statement.
A representative for the company did not immediately respond to a request for comment.
(Reporting by Svea Herbst-Bayliss; Editing by David Gregorio)
