Pitney Bowes gains after activist investor head named new CEO

Pitney Bowes

22/05/2025 17:08

** Pitney Bowes' PBI.N shares up 9.6% at $9.97, highest since early Mar, on Thurs after co appointed head of Hestia Capital Management as CEO

** Stamford, Connecticutt-based shipping and mailing firm late Weds named Hestia Founding Member Kurt Wolf as CEO, effective immediately

** Wolf succeeds Lance Rosenzweig, who is retiring from CEO and board director roles to become a consultant to PBI

** Wolf "and relevant members of leadership" to conduct comprehensive strategic review for rest of 2025, co said

** "The Board determined that Mr. Wolf, who is an architect of Pitney Bowes’ turnaround and a major shareholder, is best positioned to refine the Company’s strategy," per the statement

** In 2023, Hestia won board seats and urged PBI to explore strategic alternatives for its global e-commerce segment, and focus on its mail sorting and postage meter unit

** Hestia is #3 PBI holder with ~13.7 mln shares for ~7.6% stake, based on co's ~181.25 mln shares outstanding, per LSEG data

** Also, co said based on strong outlook for free cash flow and other financial metrics, it intends to buy back $150 mln of its stock this year, which represents the previously disclosed amount authorized by its board

** In addition, it said it's now on track to achieve 3x adjusted leverage ratio target by end of Q2, a qtr sooner than anticipated, without needing to retire additional debt

** With move on the session, PBI shares up ~38% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed are his own)

 ((lance.tupper@tr.com 1-646-279-6380))