TriMas' Shares have Underperformed its Peers
and the Market Over a Long-Term Period
Believes TriMas' Multi-Segment Structure has
Done Little to Benefit Stockholders
Recommends TriMas Sell its Aerospace Segment
or the Entire Company
NEW
YORK, July 29, 2024 /PRNewswire/ -- Barington
Capital Group, L.P. and its affiliates, including The Eastern
Company (NasdaqGM: EML) ("Barington" or "we"), which collectively
own approximately 1.5% of TriMas Corporation (NasdaqGS: TRS)
("TriMas" or the "Company"), announced today that it has sent a
letter to the Chairman of the Board of TriMas, Herbert K. Parker, recommending the Company
consider a range of alternatives to improve shareholder value.
Since the release of Barington's prior letter on December 12, 2023, TriMas has delivered a total
shareholder return of +4.6% versus the Company's Proxy Statement
peers1 and the Russell 2000, which have delivered total
shareholder returns of +26.8% and +19.1%,
respectively.2
James Mitarotonda, Chairman of
Barington, said, "Unfortunately, this recent period of
underperformance is merely the continuation of what has been a
long-term problem. As stated in our prior letter, TriMas' total
shareholder return has materially lagged its peers and the market
as a whole over the past 1-, 3-, 5-, 7- and 10-year periods. It
appears to us that TriMas' multi-segment structure has done little
to benefit stockholders."
TriMas currently trades at 8.6x NTM consensus EBITDA – a
multiple well below what the Company's Packaging and Aerospace
segments are worth, according to Barington's analysis.3
Barington notes that the aerospace sector continues to consolidate
due to the robust outlook for travel and defense demand. In
addition, a few of TriMas' multi-segment industrial peers have
recently been acquired. In both cases, the multiples paid for the
target companies were at substantial premiums to TriMas' current
NTM consensus EBITDA multiple.
For these reasons, Barington sees two compelling alternatives
that the TriMas Board should immediately pursue to improve
shareholder value – (i) sell the Aerospace segment or (ii) sell the
entire Company.
Mr. Mitarotonda continued, "After many years of attempting to
create value for shareholders, which has largely been ineffective,
we believe it is imperative that the Board promptly seek value
creating alternatives, either by selling the Aerospace segment or
the entire Company."
The full text of Barington's letter to the Company is available
at https://barington.com/trimas
About Barington Capital Group, L.P.
Barington Capital Group, L.P. is a fundamental, value-oriented
activist investment firm established by James A. Mitarotonda in January 2000. Barington invests in undervalued
publicly traded companies that Barington believes can appreciate
significantly in value when substantive improvements are made to
their operations, corporate strategy, capital allocation and
corporate governance. Barington's investment team, advisors and
network of industry experts draw upon their extensive strategic,
operating and boardroom experience to assist companies in designing
and implementing initiatives to improve long-term shareholder
value.
1 Peer information based on index created from the
2023 Peer Group listed in TiMas' 2024 Proxy Statement, Aerojet
Rocketdyne Holdings Inc., AptarGroup, Inc., Astronics Corporation,
Barnes Group Inc., Chart Industries, Inc., CIRCOR International,
Inc., Ducommun Incorporated, Enerpac Tool Group Corp., Enpro Inc.,
ESCO Technologies Inc., Myers Industries, Inc., NN, Inc., Standex
International Corporation, Triumph Group, Inc. and Woodward, Inc.
Index is market capitalization weighted.
2 Total shareholder return information based on S&P
Capital IQ for the period 12/11/23-7/25/24, including the reinvestment of
dividends.
3 Information based on S&P Capital IQ as of 7/25/24.
Enterprise value excludes operating leases. NTM refers to next
twelve months consensus mean estimate.
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content:https://www.prnewswire.com/news-releases/barington-capital-group-calls-for-trimas-to-consider-a-range-of-strategic-alternatives-to-address-it-long-term-share-price-underperformance-302208778.html
SOURCE Barington Capital Group, L.P.