Air Products Sends Letter to Shareholders Correcting Mantle Ridge's Falsehoods and Misleading Claims

Core Points - The article argues that Air Products' board nominees possess superior qualifications and recent experience in industrial gases and chemicals compared to Mantle Ridge's nominees [1][2][3] - Air Products is actively pursuing a CEO succession plan, with a timeline for announcement by March 31, 2025, countering claims of a lack of credible succession planning [9][10][12] - The company emphasizes its strong position in the clean hydrogen market, asserting that significant demand exists and its projects are strategically aligned with market needs [22][24][25] - Air Products maintains industry-leading Adjusted EBITDA margins, disputing claims of below-peer profitability [31][32] - The company refutes allegations regarding its return on invested capital (ROIC), asserting that its calculations are misrepresented by Mantle Ridge [36][38] Management and Board - Air Products' nominees, including Alfred Stern and Lisa Davis, are highlighted as having extensive and relevant experience, unlike Mantle Ridge's nominees who lack industrial expertise [1][2][3] - The board's commitment to shareholder engagement is emphasized, with multiple meetings held with significant shareholders [16][19][20] Business Strategy and Capital Allocation - Air Products is positioned to capitalize on the growing clean hydrogen market, with long-term contracts in place to support its projects [22][24][29] - The company has rejected projects that do not meet its return thresholds, demonstrating a disciplined approach to capital allocation [26] Financial Performance - Air Products reported an Adjusted EBITDA margin of 41.7% for FY2024, higher than Linde's margin of 38.2% [31] - The company achieved an 11% compound annual growth rate in Adjusted EPS from FY2014 to FY2024, countering claims of misleading growth calculations [32][33] Other Matters - The article addresses allegations against Mr. Ghasemi, clarifying that he was dismissed from a commercial dispute and emphasizing the company's achievements under his leadership [39][40][41] - Concerns regarding Mr. Reilley's past actions are raised, suggesting they disqualify him from serving on a public company board [42][46][47]