Invesitng.com -- Advance Auto Parts jumped in afterhours trading Monday after reaching a corporation with Dan Loeb's Third Point Capital and Saddle Point that provided the activist investors with three board seats.
Advance Auto Parts Inc (NYSE:AAP) rose more than 2% in afterhours on the news. The stock ended more 1% higher in the regular session after the Wall Street Journal reported on Third Point's position.
As part of an agreement with Third Point and Saddle Point Management, the company agreed to appoint A. Brent Windom, Gregory L. Smith and Thomas W. Seboldt as independent directors to its board.
“These directors’ automotive industry and supply chain experience will help us progress in our plan to return the company to profitable growth,” board chairman, Gene Lee said in a statement.
Third Point has been pushing for more experienced board to improve the performance of the auto-parts maker after losing ground to rivals AutoZone (NYSE:AZO) and O’Reilly Automotive (NASDAQ:ORLY).