Mattress Firm activist Berkshire seeks talks to enhance shareholder value, strategic activities, board composition
Mattress Firm Holding Corp. (NASDAQ:MFRM) shareholder Berkshire Partners is seeking talks on strategic issues including potential board representation.
In a Tuesday 13D filing, Berkshire Partners disclosed beneficial ownership of 10.4%. Berkshire stated it intends to contact the management and board concerning options for enhancing shareholder value and other matters relating to the business and affairs of the company, including discussions about the potential for representation on the board and discussions relating to the composition of the board of directors generally. These discussions may also include engaging with the company on a review of its strategic activities, assessment of its organization, management of its balance sheet and the pursuit of other corporate transactions.
The activist said the 13D filing is not an admission that it holds shares for the purpose or with the effect of changing or influencing the control of the company.
On 8 February 8.5% shareholder 40 North Management wrote to Mattress calling for an overhaul of the company's board that adds more independent directors and reduces the control of 36% shareholder J.W. Childs.
40 North in a letter referred to the company's corporate governance as "worst-in-class," and raised serious concern for "its ongoing treatment by J.W. Childs – a minority shareholder who effectively controls the Board of Directors – as a private company being run without regard for the interests of all shareholders."
The activist has been a shareholder for three years, and filed its initial 13D in 2013.
Mattress has a market cap of USD 1.15bn.