Barington takes activist stake in Xerium, nominates two to board
Barington Capital Group disclosed a 4.38% stake in Xerium Technologies, which represents 717,648 shares. The filing allows for activism. Barington said it desires to continue to engage in discussions with Xerium concerning the business, operations, corporate strategy, management, cost structure, indebtedness and corporate governance of the company, as well as board representation. The firm believes that Xerium's "strong position in a highly concentrated market, as well as its attractive EBITDA margins and modest capital spending requirements, are not adequately reflected in the Company's current stock price." It thinks Xerium can "significantly improve long-term shareholder value by taking a number of steps. These include, among other things: Exploring strategic transactions that include or facilitate a refinancing on more favorable terms of the Company's $480 million aggregate principal amount of 9.5% senior secured notes, which are callable beginning in August 2018; Reducing the company's cost structure; Dedicating the company's ongoing free cash flow to reducing indebtedness; and improving the company's corporate governance, including by implementing a majority voting standard for uncontested director elections. By letter dated March 13, Barington nominated two persons for election to the board of Xerium at the company's 2018 annual meeting of stockholders.