Value Creation Strategies Emerge from Engaged Capital and Yeti Partnership

Saturday 5th of April 2025 13:09:42

Engaged Capital and Yeti Reach Key Agreement: Three Ways to Create Value

By CNBC.com

April 5, 2025

Yeti Holdings, the parent company of outdoor brand Yeti, has reached a key agreement with activist investor Engaged Capital, according to a filing with the Securities and Exchange Commission.

The agreement, which was reached after months of negotiations, outlines three ways for Yeti to create value for its shareholders. The agreement comes after Engaged Capital built a significant stake in the company and pushed for changes to improve its performance.

Under the agreement, Yeti has committed to the following:

  1. Implementing a cost savings program aimed at reducing its operating expenses by $20 million over the next two years. The program will focus on streamlining its supply chain, reducing overhead costs, and improving operational efficiency.
  2. Increasing its investments in e-commerce and digital marketing to drive growth and improve its online presence. The company has committed to investing $15 million in e-commerce initiatives over the next 18 months, with a focus on enhancing its website and improving its social media presence.
  3. Enhancing its product offerings and expanding its distribution channels to drive growth and increase its market share. The company has committed to launching new products and expanding its distribution channels to reach new customers and increase its sales.

"We are excited to have reached this agreement with Engaged Capital, which we believe will help us drive value for our shareholders," said Yeti CEO Roy and President Matt Reitzes. "We are committed to delivering on our promises and creating a stronger, more profitable company for the long term."

Engaged Capital, which has a significant stake in Yeti, praised the agreement and said it is confident that the company will deliver on its commitments. "We are pleased that Yeti has agreed to take steps to create value for its shareholders," said Engaged Capital's managing partner, Glenn Welling. "We believe that these initiatives will help the company drive growth and increase its profitability, and we are confident that Yeti will deliver on its promises."