Fred’s, Inc. Announces Appointment of Heath Freeman to Board of Directors
14 August 2017 - 9:00PM
Business Wire
Brings Deep Retail, Turnaround, and Financial
Expertise
Adds a Shareholder Perspective to the Board
Announces Amended and Restated Cooperation
Agreement with Alden Global Capital LLC
Fred’s, Inc.(“Fred’s” or the “Company”) (NASDAQ:FRED) today
announced that it has appointed Heath Freeman, President and
Founding Member of Alden Global Capital LLC (“Alden”), to its Board
of Directors, effective at its next scheduled meeting, which is
expected to be held on or before August 29, 2017.
Mr. Freeman is being added to the Fred’s Board in connection
with the execution of an Amended and Restated Cooperation Agreement
between Alden and Fred’s, dated August 11, 2017. The Amended and
Restated Cooperation Agreement extends the term of the parties’
agreement into 2019 and contains updated terms regarding the
parties’ collaborative efforts to maximize value for Fred’s
shareholders.
“The Fred’s Board is pleased to welcome Heath to the Board of
Directors,” said Thomas H. Tashjian, Chairman of the Board. “We
look forward to leveraging Heath’s deep retail, turnaround, and
financial expertise. We believe that adding a shareholder
perspective to the Board as we continue to execute our healthcare
transformation will accelerate value creation for all Fred’s
shareholders.”
Michael K. Bloom, Chief Executive Officer and Member of the
Board of Directors, said, “Over the past several months, we have
gotten to know Heath and the rest of the Alden team, and have
developed a healthy and productive relationship. With the benefit
of Heath’s contributions as well as those of the entire Board,
Fred’s will be better positioned for growth and generating positive
free cash flow.”
Mr. Freeman commented, “I am eager to join the Fred’s Board of
Directors, and look forward to continuing the work we have been
doing to support the management team. I am encouraged by the
progress that we have made, and continue to have confidence in the
leadership team and future growth of the business. I look forward
to working with the rest of the Board to position Fred’s for
long-term success.”
Christopher Bodine has decided to resign from the Board of
Directors, effective August 11, 2017. Mr. Bodine joined the
Company’s Board with significant acquisition and
integration-related expertise, and following the termination of the
Company’s agreement to purchase certain assets from Rite Aid
Corporation, Mr. Bodine determined that now is the right time to
step down from the Board and focus his attention on other
professional commitments. The Board is actively engaged in a search
for a highly accomplished pharmacy and healthcare industry veteran
to add to the Board.
Mr. Tashjian added, “On behalf of the Board, I want to thank
Chris Bodine for his contribution to the Company. We wish him much
future success and happiness.”
Under the terms of the Amended and Restated Cooperation
Agreement, Alden is subject to certain customary standstill and
other provisions. The complete agreement between Fred’s Pharmacy
and Alden will be included as an exhibit to a Current Report on
Form 8-K, which will be filed with the Securities and Exchange
Commission.
Evercore is serving as financial advisor to Fred’s. Vinson &
Elkins LLP and Baker Donelson Bearman Caldwell & Berkowitz P.C.
are serving as legal advisors to Fred’s. Olshan Frome Wolosky LLP
is serving as Alden’s legal advisor.
About Heath Freeman
Mr. Freeman is the President and a Founding Member, of Alden
Global Capital LLC, a New York-based investment firm focused on
deep value, catalyst driven investing. He has been with the firm
since its founding in 2007, and has been its President since 2014.
Mr. Freeman currently serves as Vice Chairman of MediaNews Group,
Inc. (‘MNG”), the second largest newspaper business in the United
States by circulation, owning newspapers such as The Denver Post,
San Jose Mercury News and Orange County Register. At MNG he leads
the strategic review committee and serves on the compensation
committee. Mr. Freeman is a co-founder and serves on the board of
SLT Group, Inc. a private boutique fitness business founded in
2011. In addition, Mr. Freeman also co-founded City of Saints
Coffee Roasters in 2013, a third wave coffee roaster, wholesaler
and retailer. Prior to Alden, Mr. Freeman worked as an Investment
Analyst at Smith Management, a private investment firm. Mr. Freeman
began his career as an analyst at Peter J. Solomon Company, a
boutique investment bank with a focus on Retail and Consumer, where
he worked on mergers and acquisitions, restructurings and
refinancing assignments. Currently, Mr. Freeman serves as
Chairman of the Advisory Board for Jewish Life at Duke University's
Freeman Center. He is a graduate of Duke University.
About Fred’s Pharmacy
Tracing its history back to an original store in Coldwater,
Mississippi, opened in 1947, today Fred’s Pharmacy is headquartered
in Memphis, Tennessee, and operates 601 pharmacy and general
merchandise stores, which includes 14 franchised Fred’s Pharmacy
locations and an additional three specialty pharmacy-only
locations. With a unique store format and strategy that combines
the best elements of a healthcare-focused drug store with a
value-focused retailer, Fred’s Pharmacy stores offer more than
12,000 frequently purchased items that address the healthcare and
everyday needs of its customers and patients. This includes
nationally recognized brands, proprietary Fred’s Pharmacy label
products, and a full range of value-priced selections. The Company
has two distribution centers, one in Memphis, Tennessee, and
Dublin, Georgia.
For more information about the Company, visit Fred’s website at
www.fredsinc.com.
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Fred's PharmacyJason Jenne, 901-238-2787Executive Vice
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