Sachem Head owns stake in US Foods and plans to push for changes

NEW YORK, Oct. 7 (Reuters) – Investment firm Sachem Head Capital Management LP said Thursday it has a stake in US Foods Holding Corp (USFD.N) and plans to push for changes within the catering business.

Sachem Head said he was advised by food industry veteran Bernardo Hees, who until 2019 was the CEO of Kraft Heinz Co (KHC.O).

In a regulatory filing, the New York-based investment firm said it owns 5.1% of the company’s common stock and a 4.1% stake in cash-settled swaps, which represents exposure economy of 9.2%.

The company, led by Scott Ferguson, plans to speak with the company’s board and management, but declined to say exactly what kind of changes it would like to see in the company, whose brands include products. fresh from Cross Valley Farms and baked goods from Devonshire.

The share price closed at $ 37.28.

Its main competitors are Sysco Corp. and Performance Food Group.

Hees is currently working for Sachem Head as an advisor and has agreed to serve as a potential candidate for the board. But Sachem Head has yet to say whether he plans to appoint directors to the company’s 10-member board.

Pietro Satriano, current CEO and President of US Foods, joined the company in 2011 and was appointed President in 2017.

Ferguson recently challenged International Flavors & Fragrances (IFF.N), where he appointed four directors to the board and pushed the company to improve its financial performance. After the two sides came to an agreement, longtime IFF CEO Andreas Fibig announced his intention to retire last month, but said he would stay until a replacement. be found.

Sachem Head has stakes in less than 30 companies, with IFF and animal health company Elanco (ELAN.N), where Ferguson was invited to the board at the end of 2020, making up the bulk of the portfolio.

Reporting by Svea Herbst-Bayliss Editing by Sonya Hepinstall

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