Dive Brief:
- Sysco has announced that the company is adding Nelson Peltz and Josh Frank of Trian Fund Management LP to its board.
- The news comes less than a week after Trian disclosed a 7.1% stake in Sysco, which The Wall Street Journal called, "an unusually fast agreement."
- "The accord marks one of the more rapid examples of activists gaining board seats without a public battle, a sign of their increasing influence among companies and other shareholders," The Wall Street Journal reported.
Dive Insight:
In the filing, Trian pointed out Sysco's areas of weakness and opportunities for improvement, and now that Trian partners are officially on the board, it wouldn't be surprising to start seeing some significant changes at Sysco in the near future. After contending with a failed merger with US Foods that was long in the works, those changes may be welcomed by the rest of Sysco's board.
Investment firms are continuing to make their way into the industry. Other recent moves include William Ackman's $5.5 billion stake in Mondelez International announced earlier this month, and activist investor Jana Partners LLC's 7.2% stake in ConAgra Foods, which made news in June when the investor suggested ConAgra divest its private brands and add Jana partners to its board.
Peltz also serves on the board for Mondelez International, while Frank has worked with several of Trian's consumer goods investments.