A group of shareholders led by Barington Capital Group LP has asked consumer products manufacturer Lancaster Colony Corp. to sell its non-food businesses, according to a filing on 18 June 2007 with th…
A group of shareholders led by Barington Capital Group LP has asked consumer products manufacturer Lancaster Colony Corp. to sell its non-food businesses, according to a filing on 18 June 2007 with the Securities and Exchange Commission. Lancaster, which sells specialty foods, candles, glassware and car accessories, said in April 2006 that it was considering strategic alternatives, including the sale of its automotive unit and its glassware and candles businesses. In a letter dated 15 June 2007 to Chairman John B. Gerlach Jr., Barington Chairman and Chief Executive James A. Mitarotonda said that the “prompt disposition of the automotive and glassware and candles businesses is imperative”. Since the announcement more than a year ago, Mr. Mitarotonda said the company “has failed to announce any significant progress” toward its stated goals of reducing capital expenditure needs and reducing operating volatility. “In our opinion, such little progress after such an extended period of time has done little, if anything, to benefit Lancaster“s public shareholders as the company“s stock continues to languish”, Mr. Mitarotonda wrote. Lancaster shares have risen 5.5% in the past year, compared with a 13.4% rise in the Russell 2000 Index during the same time. Barington reported owning 1.7 million shares, representing a 5.3% stake in the Columbus, Ohio-based company.