A copy of the Barington letter is attached to this press release.
About Barington Capital Group:
Barington Capital Group, L.P. is an investment firm that, through its affiliates, primarily invests in undervalued, small and mid-capitalization companies. Barington and its principals are experienced value-added investors who have taken active roles in assisting companies in creating or improving shareholder value.
Barington Capital Group, L.P. 888 Seventh Avenue New York, New York 10019 March 2, 2009 John B. Gerlach, Jr. Chairman of the Board, Chief Executive Officer and President Lancaster Colony Corporation 37 West Broad Street Columbus, Ohio 43215
I would like to commend you on the initiatives Lancaster Colony Corporation has pursued under your leadership over the past 16 months.
When we wrote to you last in
- the formation of a task force to improve the Company's operations, productivity and profitability;
- the divestiture of the Company's non-core automotive and consumer and floral glass operations;
- the repurchase of over 2.3 million shares of the Company's common stock during the Company's fiscal year ended
June 30, 2008; and
- the appointment to the Company's Board of Directors of a new independent director with experience in the food industry.
It is our belief that these measures have not only helped improve margins in the Company's core Specialty Foods segment but have also enhanced the Company's overall share price performance.
Share Price Share Price Performance Over Performance since Previous Nine Year our Sept 2007 Period Correspondence (11/16/98 - 9/14/07) (9/17/07 - 2/27/09) -------------------- ------------------- Lancaster Colony Corporation 26.5% 8.3% Russell 2000 Index 100.7% (49.9%) Standard & Poor's Midcap 400 Index 148.7% (47.5%)
We are also pleased that the Company has begun to take action to improve its record in the area of corporate governance. While we believe that there is more work that needs to be done in this area, we applaud the decision of the Board to appoint a lead independent director and undertake a review to consider additional changes to improve the Company's corporate governance.
Congratulations on these accomplishments.
SOURCE Barington Capital Group, L.P.