Mattel has entered into an agreement with activist investor EdgePoint Investment Group to create a seat on its board for EdgePoint.
EdgePoint is a major shareholder of Mattel with an 18 percent stake in the company and has been pushing for changes from the struggling toy maker.
As part of the agreement, Mattel appointed Lee Matheson, a partner at EdgePoint, to the company’s board of directors.
“We welcome Lee to Mattel’s Board. Beyond his deep investor and public markets experience, his perspective as a Partner of Mattel’s longstanding and largest shareholder adds a new dimension to our board as we advance our brand-centric strategy and capitalize on the potential of our business.” Roger Lynch, chairman and CEO of Mattel, said.
The cooperation agreement between Mattel and EdgePoint, which will be filed with the Securities and Exchange Commission on a Form 8-K, includes customary voting, standstill, confidentiality and other provisions.
“Lee brings to Mattel significant public company board experience, as well as an extensive background in investment management and financing. His strengths will complement our board’s existing capabilities as we continue to focus on enhancing value for shareholders,” Noreena Hertz, chair of Mattel’s Governance and Social Responsibility Committee, said.
Mathesonʻs background spans investment management, capital markets and board service. Prior to joining EdgePoint, Matheson co-founded Broadview Capital Management, where he served as portfolio manager of the Broadview Dark Horse LP, a long/short investment fund focused on Canadian small-cap securities.
“EdgePoint has been a Mattel investor and supporter for many years. The firm has long believed in the value of the Company’s world-class brands and its premier intellectual property. I look forward to working alongside Roger and the entire board in pursuit of the shared goal of unlocking Mattel’s intrinsic value for the benefit of all shareholders,” Matheson said.
Matheson currently serves on the board of Tucows Inc., where he chairs the Governance Committee, and has previously served on the boards of Optiva, Echelon Financial Holdings, RDM Corporation, AlarmForce Industries, WesternOne, Medworxx Solutions, exactEarth Ltd, and Strad Inc.