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Calls on the Board to Stop M&A under the Current Leadership of Mr. Hewitt, Further Reduce the Cost Structure, and Aggressively Repurchase Shares
Launches www.abetterpathformatrix.com to share its views with Respect to the Company
NEW YORK, Nov. 4, 2020 /PRNewswire/ -- Engine Capital LP (together with its affiliates, "Engine"), a shareholder of Matrix Service Company ("Matrix" or the "Company") (Nasdaq: MTRX) announced today that it has publicly released a presentation shared with the Board of Directors of the Company in early October. The presentation highlights the significant underperformance of Matrix under the leadership of the current C.E.O. Mr. Hewitt and the disastrous capital allocation decisions made by the board of directors (the "Board"). In particular, the presentation highlights Matrix' failed growth strategy, bloated cost structure, history of poor M&A, and misalignment of incentives between management and shareholders. Engine concludes its presentation with the following recommendations:
No more M&A until the Board has done a market check so that it can assess its alternatives and the Company has a new leadership team with a track record of value creation through M&A
Significant reduction of the cost structure of the Company
Aggressive repurchase of shares at the current undervalued price
The full presentation is available at www.abetterpathformatrix.com, a website dedicated to sharing Engine's views with respect to creating value at MTRX. Engine encourages interested parties to visit the website regularly.
About Engine Capital
Engine Capital is a value-oriented special situations fund that invests both actively and passively in companies undergoing change.
Engine Capital, L.P.
SOURCE Engine Capital Management LP