Legion Partners Enters into Cooperation Agreement with The Chef’s Warehouse
January 16, 2018 at 07:00 pm IST
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On January 16, 2018, The Chefs’ Warehouse, Inc. announced that it has entered into an agreement with Legion Partners Asset Management, LLC and certain of its affiliates. The Company stated that pursuant to the cooperation agreement, the Company has agreed to appoint 2 new independent directors, Christina Carroll and David E. Schreibman, to the Company’s Board of Directors on or prior to February 18, 2018, and to nominate Christina Carroll and David E. Schreibman at the Company’s 2018 and 2019 annual meetings of stockholders. The Company stated that it has also agreed to reduce the size of the Board by 1 director at each of the 2018 and 2019 annual meetings of stockholders so that immediately following the 2019 annual meeting of stockholders, the Board would be fixed at 10 directors. In addition, the Company stated that pursuant to the cooperation agreement, Legion Partners has agreed to vote its shares in support of any director nominated and recommended by the Board at the Company’s 2018 and 2019 annual meetings of stockholders, in addition to certain customary standstill provisions and other voting agreements.
The Chefs' Warehouse, Inc. is a distributor of specialty food products in the United States, the Middle East and Canada. The Company offers stock-keeping units (SKUs), ranging from specialty foods and ingredients to basic ingredients and staples, produce and center-of-the-plate proteins. Its product categories include center-of-the-plate, dry goods, pastry, cheeses and charcuterie, produce, dairy and eggs, oils and vinegars and kitchen supplies. It operates through the food product distribution segment, which is concentrated primarily in the United States. The Companyâs customer base consists primarily of menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolateries, cruise lines, casinos and specialty food stores. Its center-of-the-plate products include custom cut beef, seafood and hormone-free poultry, as well as produce and food products, such as cooking oils, butter, eggs, milk and flour.