NEW YORK - Engine Capital L.P., a significant shareholder of MRC Global Inc. (NYSE: NYSE:MRC), has nominated two candidates for election to the company's Board of Directors at the upcoming 2024 Annual Meeting of Stockholders.
The investment firm, which holds approximately 4.3% of MRC's common stock, has filed a preliminary proxy statement with the U.S. Securities and Exchange Commission endorsing Brad Favreau and Daniel Silvers as nominees.
Arnaud Ajdler, Founder and Managing Member of Engine, expressed disappointment with MRC's resistance to collaborating with Engine despite the firm's efforts to avoid an election contest and willingness to settle for reduced board representation.
Engine has criticized MRC's performance and strategy, noting the company's 42.4% stock decline since its initial public offering nearly 12 years ago and underperformance compared to competitor DNOW Inc. in recent years.
The ongoing dispute between MRC and its Preferred Stockholder, Cornell Capital, was highlighted as a barrier to optimizing the company's capital structure and financial flexibility. Engine also conveyed concerns over MRC's M&A strategy and the track record of CEO Rob Saltiel in creating value through business acquisitions.
Favreau, a partner at Engine Capital Management and board member at American Outdoor Brands , Inc. (NASDAQ: NASDAQ:AOUT) and MYR Group Inc. (NASDAQ: NASDAQ:MYRG), brings experience in finance, capital allocation, corporate governance, and M&A.
Silvers, an investment manager and former banker, has served in senior positions at global asset managers, including Fortress Investment Group LLC, and on the boards of several public companies such as Avid Technology , Inc. (NASDAQ: NASDAQ:AVID) and Universal Health (NYSE:UHS) Services, Inc. (NYSE: UHS).
Engine Capital is known for its active and passive investment strategies in companies undergoing change and has a history of advocating for value-enhancing initiatives.
The information in this article is based on a press release statement from Engine Capital.
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