Barington Capital issues letter to TriMas board

Trimas (TRS) shareholder Barington Capital Group and its affiliates, including The Eastern Company (EML), which collectively own 1.0% of TriMas, has sent a letter to the CEO of TriMas, Thomas Amato, recommending the company implement a plan to improve long-term shareholder value. Highlights of the letter include: “TriMas’ shares have underperformed its peer groups, the S&P 600 Industrials Sector Index, the S&P 500 and the Russell 2000…James Mitarotonda, Chairman of Barington, said, “We believe TriMas’ poor share price performance is a direct result of the challenges it is experiencing at its Packaging segment and the subscale size of its Aerospace segment. Furthermore, we believe TriMas’ multi-segment structure is not delivering long-term value for stockholders, as the sum of TriMas’ segments are worth well in excess of its current share price…We propose that TriMas focus its operations on its packaging businesses – the Packaging segment and Norris Cylinder – due to their healthy cash flow characteristics and attractive long-term prospects. We believe our proposal can be implemented by divesting Arrow Engine, as the business is performing at peak levels, and the Aerospace segment, once its margins normalize. We are confident that our proposal can maximize shareholder value, unlocking $42-$54 per share for stockholders over three years or approximately 65%-116% above the company’s recent share price.”