Mantle Ridge Unveils Plan to Revitalize Air Products: Introducing Shareholder Nominees and Solutions

Mantle Ridge LP, a significant shareholder of Air Products and Chemicals, Inc. (NYSE: APD), has released a series of video interviews introducing its four independent shareholder nominees and proposed CEO candidate, Eduardo Menezes. The nominees – Andrew Evans, Paul Hilal, Tracy McKibben, and Dennis Reilley – aim to address the specific challenges and underperformance issues at Air Products by bringing diverse expertise and fresh perspectives to the board. Mantle Ridge's proposed solutions focus on improving capital allocation, derisking clean hydrogen projects, and enhancing governance.

Mantle Ridge's nominees bring a wealth of experience in energy, decarbonization, finance, and mergers and acquisitions, with backgrounds serving on public company boards and being independent. Paul Hilal, Mantle Ridge's founder and CEO, has a proven track record in corporate governance and value creation, having previously identified Seifi Ghasemi as Air Products' CEO in 2014. Dennis Reilley, a former executive vice president at Linde, brings deep industry knowledge and operational experience, having served as a director at several public companies. Andrew Evans, a former CEO of W.R. Grace & Co., offers extensive experience in the chemical industry, while Tracy McKibben, a former CFO of LyondellBasell, brings financial expertise and experience in capital allocation, mergers and acquisitions, and risk management.

Mantle Ridge's proposed CEO candidate, Eduardo Menezes, has a strong background in the industrial gases industry, having served as executive vice president for Europe, Middle East, and Africa at Linde. However, Menezes has not served as a public company CEO or board director and has been inactive as an executive for almost four years. While his fresh perspective could bring innovation to Air Products, his lack of recent executive experience and absence of a public company CEO role on his resume may raise concerns about his ability to lead the company effectively.

Mantle Ridge's proposed changes could significantly impact Air Products' long-term financial performance and shareholder value. By nominating experienced directors and potentially replacing the current CEO, Mantle Ridge aims to drive strategic decisions, improve capital allocation, and derisk clean hydrogen projects. Mantle Ridge's focus on securing offtake agreements before committing to large projects could reduce risks and improve returns, while its proposed capital allocation framework, limiting CapEx to mid-teen percentages of revenue after fiscal year 2026, could help maintain a healthy balance between growth and profitability.

In conclusion, Mantle Ridge's video series introduces a compelling slate of independent shareholder nominees and a proposed CEO candidate, outlining solutions to address the specific challenges and underperformance issues at Air Products. While Mantle Ridge's nominees bring valuable expertise and experience, the success of their proposed changes will depend on their ability to work effectively with the existing board and management team, as well as the market's reception to their plans. Shareholders should carefully consider the merits of Mantle Ridge's proposals and vote accordingly at the upcoming annual meeting.