Nelson Peltz

Nelson Peltz
Born (1942-06-24) June 24, 1942
Brooklyn, New York, United States[1]
Residence Bedford, New York
Palm Beach, Florida[2]
Education Wharton School of the University of Pennsylvania (BS)
Occupation Chief Executive Officer & Founding Partner of Trian Fund Management, L.P.[3][4]
Net worth Increase US$ 1.35 billion (February 2016)[5]
Board member of Wendy's Company (Chairman)
Mondelēz International Inc.[6]
Ingersoll Rand plc[7]
Legg Mason, Inc.[8]
Spouse(s) wife 1 (divorced)
wife 2 (divorced)
Claudia Heffner[9]
Children 10 (8 with Heffner)

Nelson Peltz (born June 24, 1942) is an American businessman and a founding partner, together with Peter W. May and Edward P. Garden, of Trian Fund Management. L.P., an alternative investment management fund, based in New York.[4] He is non-executive chairman of the Board of The Wendy's Company and a director of Legg Mason,[8] Mondelēz International[6] and Ingersoll Rand.[7] He was formerly a director of H.J. Heinz Company.[3] He was also formerly the Chief Executive Officer of Triangle Industries.[10]

Early life and education

Peltz was born in 1942 in Brooklyn, New York, and is Jewish, the son of Claire (née Wechsler) and Maurice Herbert Peltz.[11][12][13] Peltz was enrolled at the undergraduate program at the Wharton School of the University of Pennsylvania, where he joined the Fraternity of Phi Gamma Delta,[14] but never completed his degree.[11]

In 1963, he dropped out of the University of Pennsylvania’s Wharton School with the intention of becoming a ski instructor in Oregon.[15] However, he ended up driving a delivery truck for A. Peltz & Sons, a wholesale food distribution business founded by his grandfather Adolph in 1896, which delivered fresh produce and frozen food (Snow Top)[16] to restaurants in New York.[9][11]

His father gave him free rein with the company, and over the next 15 years he and his older brother, Robert B. Peltz, grew the business gradually shifting the product line from produce to institutional frozen foods.[17] Over the next 10 years, Peltz bought up several food companies, and in 1972, he and his brother took their company, then called Flagstaff Corp., with $150 million in sales, public.[11][15] In 1982 his brother Robert bought back the assets of Peltz Food from Flagstaff after it went bankrupt.[17]

Business career

In the 1980s, Peltz and his business partner, Peter May, who had joined Flagstaff as chief financial officer after having been its accountant, went looking for new acquisitions. In April 1983, the two bought a stake in vending-machine and wire company Triangle Industries Inc. with the idea of using it to make acquisitions, building it into a Fortune 100 industrial company.[18] Triangle was sold to Pechiney in 1988.[19]

In 1997, through an investment vehicle they controlled, Triarc Cos,[20] Peltz and May acquired Snapple, from Quaker Oats. Snapple, together with other beverage brands was sold to Cadbury Schweppes in 2000. The Snapple turnaround was featured as a Harvard Business School case study.[20]

In 2005, Peltz, May, and Ed Garden, founded Trian Fund Management, L.P. As an activist investing firm, Trian has invested in such companies as Heinz,[21] Cadbury, Kraft Foods,[22] Ingersoll Rand,[23] Wendy’s,[24] DuPont,[25] Mondelēz,[6] PepsiCo,[26] State Street Corporation [27] and Family Dollar.[28]

In 2006 Trian was involved in a proxy contest with Heinz to get five independent directors on the board of Heinz. Trian succeeded in getting two members on the board, including Peltz.[29]

In 2007, Trian bought a 3% share of Cadbury-Schweppes. Cadbury Schweppes Americas Beverages was later spun off from the Cadbury Schweppes confectionery group. In 2007, Trian also bought $1.8 billion in shares of Kraft Foods, roughly a 3% of the total equity of the food maker.[30]

On April 24, 2008, it was announced that Triarc Cos. would merge with burger chain Wendy's.[31] The merger was completed on September 29, 2008.[32] The new company was named Wendy's Arby's Group and traded on the New York Stock Exchange under the symbol WEN. On July 25, 2011, Wendy's Arby's sold Arby's to Roark Capital Group and changed its name to The Wendy's Company.[33]

According to CNBC, on February 15, 2011, Trian offered to buy Family Dollar for $55–60 per share.

In mid-February 2011, Trian, announced it had accumulated an 8% stake in the Family Dollar company and indicated a willingness to participate in a take private LBO for the company with a total value of about $7 to $8 billion. This overture was rejected by the company management and board of directors.[34] In September 2011, Ed Garden, Trian’s Chief Investment Officer, joined the Family Dollar board.[35]

Peltz was appointed to the Ingersoll-Rand board of directors in 2012.[36]

In August 2013, it was reported that Trian held an approximate $1.25 billion ownership stake in DuPont.[25]

In January 2014, as one of the company’s largest shareholders, with a current beneficial ownership of more than 46 million shares, Peltz was appointed to the Board of Directors of global snacking company, Mondelēz International (NASDAQ: MDLZ).[37][38]

In February 2014, as a beneficial owner of approximately $1.2 billion of PepsiCo, Inc. (NYSE: PEP) common shares Trian publicly released a letter to PepsiCo’s Board of Directors and a white paper detailing why separating global snacks and beverages into two independent public companies would be the right long-term decision for the business and would create substantial value for shareholders.[39] Trian said it would immediately begin to engage fellow shareholders in a public dialogue with the goal of creating a groundswell of support for a separation of snacks and beverages.[40]

In February 2014 Forbes listed Nelson Peltz as one of the 25 Highest-Earning hedge fund managers in 2013. His 2013 total earnings was $430 millions, ranked 16th among the 25 top earning hedge fund managers.[41]

In May 2015, Trian was unsuccessful in a bitter proxy context to appoint four of its nominees to the board of DuPont.[42] Five months later the CEO of DuPont, Ellen Kullman, resigned; at the time DuPont acknowledged lower than expected earnings and the need to accelerate a cost-cutting plan.[43]

In October 2015, Peltz’s fund Trian bought a $2.5 billion stake in General Electric.[44]

Personal life

Peltz's children, Will and Nicola, at the 2014 Toronto International Film Festival

Peltz has been married three times. His third wife is Claudia Heffner, a former fashion model, with whom he has eight children. He has two children from his prior marriages.[45] Among Peltz's children are actors Nicola Peltz[46] and Will Peltz.[47] His son Brad Peltz was a professional ice hockey player who played in the ECHL during the 2012–13 ECHL season.[48]

Peltz resides in Bedford, New York.[5] He also owns Montsorrel, which is his house in Palm Beach, Florida[2] previously owned by Anita Young, the sister of Georgia O'Keeffe. He has recently begun a refurbishment and expansion project for the property.[49]

As of July 2015, his net worth was estimated by Forbes to be $1.93 billion.[5]

Philanthropy

In 2005, Peltz was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush.[50][51][52] He is also a heavy contributor to Jewish causes and has been described by The New York Times as a "compassionate leader" of the New York Jewish community.[53][54]

Awards and recognition

He was recognized by the National Association of Corporate Directors (NACD) in 2010, 2011 and 2012 as among the most influential people in global corporate governance.[3]

References

  1. ↑ "Nelson Peltz Biography". 4-traders.com. Retrieved March 30, 2012.
  2. 1 2 "Nelson Peltz's House". VirtualGlobetrotting.com. Retrieved February 26, 2008.
  3. 1 2 3 "Nelson Peltz". CNBC. Retrieved March 4, 2014.
  4. 1 2 "Company Overview of Trian Fund Management, L.P.". Bloomberg Businessweek. Retrieved April 4, 2012.
  5. 1 2 3 Forbes: The World's Billionaires: Nelson Peltz February 2016
  6. 1 2 3 Duane D. Stanford (January 21, 2014). "Mondelez Names Peltz Director as Investor Seen Pushing Cuts". Bloomberg.
  7. 1 2 Anupreeta Das and Sharon Terlep (August 13, 2012). "Activist Peltz Wins Board Seat At Ingersoll". The Wall Street Journal.
  8. 1 2 "Biography Nelson Peltz". Wendy's. Retrieved April 5, 2012.
  9. 1 2 Shawn Tully (March 19, 2007). "The Reinvention of Nelson Peltz". CNNMoney.com.
  10. ↑ "Fortune 500". Fortune (magazine). Retrieved April 3, 2012.
  11. 1 2 3 4 Jewish Virtual Library: "Nelson Peltz" by Nancy A. Ruhling retrieved January 14, 2012
  12. ↑ "Maurice Peltz, 76, Built Family Food Business Into a Major Marketer". The New York Times. 1977-09-06.
  13. ↑ "Paid Notice: Deaths Peltz, Claire". The New York Times. 2007-04-12.
  14. ↑ "Wall Street Frats". Business Insider. Retrieved 20 February 2013.
  15. 1 2 Katherine Burton and Sree Vidya Bhaktavatsalam (September 20, 2012). "Peltz Gets $1 Billion as Activist Strategy Impresses". Bloomberg News.
  16. ↑ Palm Beach Daily News: "Matisse - The Younger Coming" by Cholly Knickerbocker January 15, 1952 | "Frozen food heiress Gladys Peltz (Poppa owns Snow Crop)..."
  17. 1 2 "BUSINESS PEOPLE; Sale Won't End Career Of Peltz Food's Owner". The New York Times. August 26, 1988.
  18. ↑ "Entrepreneurs Turn Tin Into Gold Sale Of Can Firm May Bring Owners $830 Million". Sun Sentinel. November 27, 1988.
  19. ↑ "Pechiney SA launches a tender offer for Triangle Industries Inc from Trian Group LP". Thomson Reuters. January 13, 1989. Retrieved July 6, 2015.
  20. 1 2 John Deighton (February 4, 2002). "How a Juicy Brand Came Back to Life". Harvard Business School.
  21. ↑ Miles Weiss (February 14, 2013). "Peltz Helped Spur Heinz Turnaround Setting Stage for Bid". Bloomberg.
  22. ↑ Antoine Gara (January 21, 2014). "Pepsi Challenge: Where's the Pact Between Mondelez and Trian?". TheStreet.com.
  23. ↑ "Ingersoll-Rand to spin off security business -sources". Reuters. December 9, 2012.
  24. ↑ Michelle Celarier (August 15, 2013). "Peltz dines on Wendy's stake". New York Post.
  25. 1 2 Jack Kaskey and Beth Jinks (August 15, 2013). "Peltz's Trian Said to Meet DuPont's CEO, Boosts Stake". Bloomberg.
  26. ↑ "Let my Fritos go". The Economist. March 1, 2014.
  27. ↑ Sharon Terlep (January 28, 2013). "State Street Stake Pared by Activist Investor". The Wall Street Journal.
  28. ↑ Maureen Farrell (January 9, 2014). "Family Dollar: Next Retailer Up for Sale?". The Wall Street Journal.
  29. ↑ Dan Burrows (August 14, 2006). "Heinz proxy fight comes down to the wire". MarketWatch.com.
  30. ↑ Shawn Tully and Matthew Boyle (June 25, 2007). "Peltz Has His Slice of Kraft - Now what?". CNNMoney.com.
  31. ↑ Josh Fineman and Zachary Mider (April 24, 2008). "Peltz's Triarc to Buy Wendy's, Combine It With Arby's". Bloomberg.
  32. ↑ "Triarc and Wendy's Complete Merger Transaction". Business Wire. September 29, 2008.
  33. ↑ "Wendy's/Arby's Group Completes Sale of Arby's to Roark Capital Group". Wendy's. July 5, 2011.
  34. ↑ Chris Burritt (March 3, 2011). "Family Dollar Rejects Buyout Offer From Peltz's Trian, Adopts Poison Pill". Bloomberg.
  35. ↑ "Family Dollar Appoints Edward Garden of Trian Partners to Board of Directors". Bloomberg. September 29, 2011.
  36. ↑ Das, Anupreeta; Terlep, Sharon (August 13, 2012). "Activist Peltz Wins Board Seat At Ingersoll". The Wall Street Journal. p. B1.
  37. ↑ "Activist investor Nelson Peltz joins Mondelez board". ChicagoTribune. Retrieved 7 February 2014.
  38. ↑ Matt Egan (January 21, 2014). "Proxy War Averted: Mondelez Adds Activist Nelson Peltz to Board". Fox Business Network.
  39. ↑ Duane D. Stanford (February 20, 2014). "Peltz Renews PepsiCo Breakup Proposal in Rebuke of CEO Nooyi". Bloomberg.
  40. ↑ Siddharth Cavale (February 20, 2014). "Nelson Peltz revives campaign to split up PepsiCo". Reuters.
  41. ↑ Vardi, Nathan (Feb 26, 2014), "The 25 Highest-Earning Hedge Fund Managers And Traders", Forbes
  42. ↑ Bunge, Jacob (May 13, 2015). "DuPont Defeats Peltz, Trian in Board Fight - WSJ". wsj.com. Retrieved May 14, 2015.
  43. ↑ Merced, Michael J. De La (2015-10-05). "DuPont Chief Executive Ellen Kullman to Retire". The New York Times. ISSN 0362-4331. Retrieved 2015-10-06.
  44. ↑ "Nelson Peltz's Trian takes $2.5 billion stake in General Electric". Reuters. 5 October 2015.
  45. ↑ Tully, Shawn (March 16, 2007). CNN Money: "The reinvention of Nelson Peltz"
  46. ↑ Baker, Tom (2010-07-16). "'Airbender' ideal: Sweet but strong". Daily Yomiuri Online. Retrieved 2010-07-20.
  47. ↑ "Matthew William Cooper Peltz - IMDb". Internet Movie Database (IMDb). Retrieved April 2, 2012.
  48. ↑ "Brad Peltz". EuroHockey.com. Retrieved March 12, 2014.
  49. ↑ Bandell, B. "Billionaire Nelson Peltz inks big mortgage on massive Palm Beach mansion", South Florida Business Journal, 8 May 2015. Accessed 28 May 2015
  50. ↑ Drinkard, Jim (2005-01-17). "Donors get good seats, great access this week". USA Today. Retrieved 2008-05-25.
  51. ↑ "Financing the inauguration". USA Today. 2005-01-16. Retrieved 2008-05-25.
  52. ↑ "Some question inaugural's multi-million price tag". USA Today. 2005-01-14. Retrieved 2008-05-25.
  53. ↑ Bloom, Nate (2010-07-30). "Jewish Stars 7/30". Cleveland Jewish News. Retrieved 2010-09-07.
  54. ↑ "Paid Notice: Deaths Peltz, Claire". The New York Times. 2007-04-12. Retrieved 2010-09-07.
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