Activist investor Barington nominates two directors at Xerium

Eastern

12/04/2018 11:05

By Svea Herbst-Bayliss
    BOSTON, April 12 (Reuters) - Activist investor Barington
Capital Group LP launched a fight for two board seats at machine
industry company Xerium Technologies Inc.  XRM.N , according to
a regulatory filing made on Thursday.
    The New York-based hedge fund, which owns 5.05 percent of
Xerium, nominated two directors to sit on the company's eight
member board. It named Jared Landaw, the firm's chief operating
officer and general counsel, and Michelle Applebaum, a former
steel market industry analyst, on March 13.
    On March 19, six days after Barington nominated its
candidates, the company said it will explore strategic
alternatives. One day after making that announcement, Xerium's
chairman, James Wilson, met with Barington representatives.
    Barington is urging the company, which makes products used
primarily in the production of paper, to consider selling itself
or find a way to refinance its $480 million of 9.5 percent
senior notes.
    The hedge fund currently has representatives on the boards
of three industrial companies; A. Schulman, Inc.  SHLM.O ,
OMNOVA Solutions, Inc. OMN.N  and The Eastern Company  EML.O .
    James Mitarotonda, who runs Barington, tends to invest in
industrial companies or retail companies. Barington, along with
Shah Capital and NuOrion Partners, has been pushing Avon
Products to sell itself and last month reached an agreement to
put Mitarotonda on the board.

 (Reporting by Svea Herbst-Bayliss)
 ((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))