Key Takeaways
- Activist investor Dan Loeb’s hedge fund Third Point LLC and Saddle Point Management L.P. teamed up to acquire a stake in Advance Auto Parts Inc.
- Third Point has placed three new directors on the Advance Auto Parts board.
- The company is in talks to sell its Canadian business and equipment distributor, Worldpac.
Automotive aftermarket parts provider Advance Auto Parts Inc.’s (AAP) shares rose 4% in early trading on Tuesday after Dan Loeb’s activist hedge fund Third Point LLC disclosed a stake and added three new directors to its board on Monday.
Third Point has teamed up with Saddle Point L.P., run by former Pershing Square Capital Management partner Roy Katzovicz, to take the position in the Raleigh, N.C.-based company, Advance Auto Parts said in a statement Monday.
The disclosure of the activist hedge funds’ stake follows the firm’s appointment of Shane O’Kelly as chief executive officer (CEO) in August. The company is currently in talks to sell its Canadian business and equipment distributor, Worldpac.
The three directors appointed to the board are A. Brent Windom, Gregory L. Smith, and Thomas W. Seboldt. The company’s board temporarily will expand to 12 directors with the new appointments.
“These three directors bring essential operational experience and industry expertise to support Shane as he executes on an ambitious agenda,” Loeb said in the statement from Advance Auto Parts.
Loeb’s fund exited Alphabet Inc. (GOOGL) in the final quarter of 2023, it was reported last month, and decreased his stakes in Uber Technologies Inc. (UBER), Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), and Taiwan Semiconductor Manufacturing Co. (TSM),
The aftermarket car-parts retailer posted a surprise fourth-quarter loss last month and has been on a cost-cutting drive.
Advance Auto Parts’ stock jumped 4% to $78.83, its highest price this year, at 9:51 a.m. ET Tuesday.