Engaged Capital announced that they have acquired a 5.1% stake claim in AeroVironment, Inc. Engaged Capital expressed its intent to correct AeroVironment, Inc.'s corporate governance. Engaged Capital is also set on enhancing the capital structure of the company, as well as to enhance the financial disclosure and to strengthen the focus of the company to create a structured capital allocation. Engaged Capital also expressed its commitment to work with AeroVironment, Inc.'s board of directors and its management team to achieve fair valuation for the company.
"We believe that AeroVironment's impressive product and technology portfolio, leading market position, varied and significant growth prospects, and excellent balance sheet should command a higher valuation. In our view, concerns over an excess of cash in the capital structure, a lack of granularity and specificity with respect to its growth plans, and uncertainty surrounding its heavy exposure to the defense budget are all addressable issues," said Glenn W. Welling, Engaged Capital's Principal and Chief Investment Officer. "We are fully committed to working with the board of directors and management of AeroVironment to implement strategic initiatives to enhance the Company's equity valuation and maximize value for all shareholders."
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