Jana Partners, an activist investor, has taken steps to influence the direction of Lamb Weston Holdings, a frozen potato manufacturer. The firm has installed former Lamb Weston president Jeffrey Delap on its board after acquiring over 5% of the company’s shares. Delap, who previously held leadership roles at both Lamb Weston and McCain Foods USA, brings significant industry experience to the board amid rising tensions over the company’s recent performance.
Lamb Weston has struggled financially, recently reporting an unexpected loss in its second-quarter results and lowering its earnings forecast due to a slowdown in demand. The company’s stock has dropped significantly this year despite a slight 4% increase recently following the news of Delap’s appointment.
In light of the recent management changes, with CEO Tom Warner set to be replaced by COO Michael J. Smith, Jana Partners has criticized the board for its approach to leadership transitions. The firm has strongly urged for a complete overhaul of the board or for the sale of the company, labeling the current board’s actions as detrimental to shareholder interests.
Jana Partners appears committed to advocating for substantial changes within Lamb Weston as it navigates these ongoing challenges.