Jana Partners Pushes Contact-Lens Maker Cooper to Replace Its CEO
Medical-device manufacturer requires urgent overhaul to address ‘chronic underperformance,’ letter says
- Activist hedge fund Jana Partners sent a letter demanding that contact-lens maker Cooper Cos. replace its chief executive.
- Jana Partners also urged Cooper Cos. to consider selling its core businesses.
- The activist investor stated that Cooper Cos. requires an urgent overhaul to address chronic underperformance and poor inventory management.
Activist hedge fund Jana Partners wants contact-lens maker Cooper Cos. to replace its chief executive and weigh selling its core businesses.
The activist investor made the demands in a letter it sent the company Thursday that was viewed by The Wall Street Journal.
Cooper’s chief executive, Albert White, has held the role since 2018.
The details
Cooper had a market value of around $10 billion as of Thursday’s close after its shares have dropped around 16% in the past year.
The medical-device manufacturer makes contact lenses and vision-care products through its CooperVision segment and provides products and services for women’s health and fertility through CooperSurgical. CooperVision is one of the largest producers of soft contact lenses.
Jana said Cooper requires an urgent overhaul to address its “chronic underperformance” and inability to manage its inventory and capital spending. The activist investor called on the company to replace its CEO, appoint a new board chair, engage with potential buyers of the contact-lens business, and consider selling its fertility and medical-device assets.
The context
Jana is ramping up the pressure on Cooper after building a stake in the company roughly a year ago. At that point, it urged it to consider strategic alternatives including a potential deal to combine its contact-lens unit with rival Bausch + Lomb.
Since then, investor concern has weighed on the company’s shares, falling 28%. When Cooper reported its third-quarter earnings earlier this month, it said it is expanding its U.S. sales force to reach 5,000 additional eye-care offices.
Should Jana decide to run a proxy fight at Cooper, the window to nominate directors closes in early January, according to FactSet.
Jana earlier this year built a stake in Fiserv and pushed for changes to boost the payments company’s underperforming stock.