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Advance Auto Parts expands board with new directors

EditorNatashya Angelica
Published 2024-03-11, 04:42 p/m
© Reuters.

RALEIGH, N.C. - Advance Auto Parts , Inc. (NYSE: NYSE:AAP), a significant player in the North American automotive aftermarket parts sector, announced the immediate appointment of three new independent directors to its board. The expansion comes as part of a cooperation agreement with investment firms Third Point LLC and Saddle Point Management, L.P.

The newly appointed directors, A. Brent Windom, Gregory L. Smith, and Thomas W. Seboldt, bring a wealth of automotive industry and supply chain experience, expected to support the company's strategies for profitable growth. Gene Lee, the independent chair of the board, expressed confidence that these additions would contribute significantly to creating shareholder value.

Shane O'Kelly, president and CEO of Advance Auto Parts, highlighted the board's commitment to ongoing refreshment to ensure the right mix of skills and experience. The company is currently executing operational initiatives aimed at improving competitiveness and customer service, including consolidating its supply chain.

Daniel S. Loeb, CEO of Third Point, and Roy J. Katzovicz, CEO of Saddle Point Management, both endorsed the appointments, noting the potential for meaningful shareholder value creation and the importance of a collaborative approach for success.

The cooperation agreement, which includes standard standstill, voting, and other provisions, will be filed with the U.S. Securities and Exchange Commission. Legion Partners Holdings, LLC, another shareholder, has also expressed support for the new board members.

With these appointments, Advance Auto Parts' board will temporarily expand to 12 directors. At the upcoming annual meeting on May 22, 2024, 11 director nominees, including Windom, Smith, and Seboldt, are expected to stand for election.

Advisors to the company include Centerview Partners LLC as a financial advisor and Hogan Lovells US LLP as legal counsel. Third Point and Saddle Point are advised legally by Willkie Farr & Gallagher LLP and Proskauer Rose LLP, respectively.

The announcement is based on a press release statement and comes as part of Advance Auto Parts' broader strategy to enhance its governance and operational effectiveness.

About the new directors:

A. Brent Windom has nearly four decades of experience in the automotive sector, recently leading Uni-Select Inc (TSX:UNS). Gregory L. Smith brings nearly 30 years of supply chain expertise, with a current role at Medtronic (NYSE:MDT) plc and past experience at Walmart (NYSE:WMT) Inc. and Goodyear. Thomas W. Seboldt offers over three decades of industry experience, primarily with O'Reilly (NASDAQ:ORLY) Automotive, Inc., and has been involved with key industry associations.

Advance Auto Parts operates 4,786 stores and 321 Worldpac branches, serving professional installers and do-it-yourself customers, with additional locations in Canada, Puerto Rico, and the U.S. Virgin Islands.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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