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Coppersmith Capital Issues Statement Regarding Alere Annual Meeting

  Coppersmith Capital Issues Statement Regarding Alere Annual Meeting

Business Wire

NEW YORK -- August 8, 2013

Coppersmith Capital Management, LLC today issued the following statement in
response to the apparent election of Alere Inc.’s (NYSE:ALR) nominees to the
Board of Directors at yesterday’s annual meeting.

Jerome Lande, Managing Partner at Coppersmith, said, “Starting in 2012 we
proposed meaningful changes at Alere because its performance has been poor and
declining for years, its leverage is excessive and its board has routinely
failed to allocate capital wisely or hold management accountable. As a result
of our efforts and the extraordinary support we received from our fellow
stockholders, Alere has made many positive changes and commitments for which
it will be held accountable:

  *Organic growth expanding to high single-digits by 2015
  *28.0% SG&A margin for full-year 2015
  *Total R&D spending to stay at $155mm a year through 2015
  *Leverage target of 3.0x by the end of 2015
  *Near-term divestiture proceeds of at least $600mm, including the Proctor &
    Gamble JV with potentially higher proceeds from toxicology assets
  *Appointing a Lead Independent Director
  *Adopting majority voting for director elections
  *Stockholder ability to call a special meeting
  *Five new independent directors out of an eleven-member board

Lande continued: “These measures are promises from management and the new
board, for which we fully expect stockholders to hold them accountable – now
and in the future. Notably, even with these concessions across virtually every
issue we raised, we estimate stockholders still came within a few percentage
points of electing the Coppersmith nominees. Moreover Alere’s nominees
prevailed only because of the switch of support from Coppersmith to Alere at
the eleventh hour by two of the company’s largest stockholders, we believe.
This resounding level of support for Coppersmith’s nominees, and the
extraordinary commitments we believe management made to secure a last-second
victory, make it clear that the clock is ticking for performance and
accountability at Alere.”

“One of the positive results of this process was that it caused the new
directors to hear firsthand the long-standing frustration of stockholders, and
we expect that as a result they will objectively evaluate all strategies to
unlock value at Alere. Moreover, we hope they will respond by instituting a
culture of accountability and providing an appropriate counterbalance to
management. We look forward to maintaining a constructive dialogue with the
new board to make sure the right strategies are embraced for all
stockholders.”

“We want to thank our fellow stockholders for their support and contribution
to this long overdue and healthy debate about the future of our company, and
encourage them to keep up the pressure so that accountability for Alere
management and the new board continues beyond this annual meeting.”

Contact:

Media:
Sard Verbinnen & Co
Dan Gagnier, 212-687-8080
or
Investor:
MacKenzie Partners, Inc.
Mark Harnett, 212-929-5500
 
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