Beauty conglomerate Kenvue has ended months of sparring with activist investor Starboard Value.
As part of an agreement with Starboard, the consumer health giant announced the appointment of three new directors to its board.
The move follows criticism of Kenvue’s lacklustre financial performance by the US hedge fund, which first invested in the Johnson’s and Neutrogena owner in October 2024, according to Reuters.
Starboard CEO and Chief Investment Officer Jeffrey Smith will become a Kenvue director, effective immediately.
Also joining the board with immediate effect are independent directors Sarah Hofstetter, President of e-commerce acceleration company Profitero, and Erica Mann, the former lead of Bayer’s Consumer Health Division.
Last month, Starboard nominated Smith, along with three other candidates, to Kenvue's board.
Hofstetter and Mann were not among these nominees, which Starboard said it would now withdraw as part of the settlement.
“We invested in Kenvue because of the tremendous potential we see in the company’s portfolio of iconic brands and market-leading positions in large and growing markets,” said Smith.
The hedge fund manager added: “We look forward to working collectively as a board to position Kenvue as the preeminent global consumer health company and pursue opportunities to improve growth and profitability and enhance value for shareholders.”
“Sarah’s brand building and digital marketing expertise, Erica’s global consumer health industry experience and Jeff’s investor perspective and extensive service on corporate boards will further strengthen the board with complementary, value-additive skillsets,” said Larry Merlo, Chair of Kenvue’s board.
Kenvue reported poorer-than-expected net sales for the fourth quarter of 2024, down 0.1% to US$3.7bn.
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