Appoints Lance Rosenzweig, an Experienced
Corporate Leader with a Background Driving Efficiencies and
Simplifying Corporate Structures, as Interim CEO
Company to Target Additional Annualized Cost
Savings of $60M-$100M as well as Balance Sheet and Cash Management
Improvements to Expedite the Paydown of High-Cost Debt
Board Establishes a Value Enhancement
Committee to Promptly Finalize the Strategic Review of the GEC
Segment and Support the Timely Implementation of Other New
Initiatives
Retains Two Nationally Recognized Consulting
Firms with Financial and Operational Expertise to Support New
Initiatives
Pitney Bowes Inc. (NYSE: PBI) (“Pitney Bowes” or the “Company”),
a global shipping and mailing company that provides technology,
logistics and financial services, today announced the appointment
of Lance Rosenzweig as the Company’s interim Chief Executive
Officer (“CEO”), effective immediately. Mr. Rosenzweig will
continue to serve as a member of the Board of Directors (the
“Board”). In connection with today’s appointment, Jason Dies has
stepped down from the role of interim CEO and retired from the
Company following years of valued service in various executive
roles. Pitney Bowes thanks Mr. Dies for his strong contributions
and leadership.
The Board believes that Mr. Rosenzweig is best positioned to
accelerate the Company’s transformation and drive enhanced value
for shareholders as interim CEO. In addition, the Board has
converted its Finance Committee into a Value Enhancement Committee,
which is tasked with overseeing financial, operational and
strategic efforts associated with the initiatives described below.
These decisions follow the reconstituted Board’s assessment of ways
to expedite Pitney Bowes’ transformation into a more streamlined
enterprise focused on its core, cash-generating segments.
The initiatives include:
- Cost Rationalization – Building on
previously announced efficiency measures that totaled approximately
$85 million, Pitney Bowes has retained a nationally recognized
consultant to support a cost rationalization review. Initial
analysis has identified an additional $60 million to $100 million
in potential annualized savings across the organization, apart from
the Global Ecommerce (“GEC”) business.
- GEC Accelerated Review – Pitney
Bowes is working to expeditiously conclude a strategic review of
the segment. The Board, whose members have significant transaction
experience, is increasing its involvement in the review to drive
the near-term completion of a review that is intended to enhance
shareholder value.
- Cash Optimization – Pitney Bowes
is working to reduce its go-forward required cash needs by
approximately $200 million. The Company intends to achieve this
goal by improving its liquidity forecasting and management at all
levels, taking action on GEC and optimizing the balance sheet of
Pitney Bowes Bank (the “Bank”). In addition to freeing up cash for
the Company, the Bank optimization work will improve its return on
equity.
- Balance Sheet Deleveraging –
Pitney Bowes is taking required actions to capitalize on the
benefits linked to the three aforementioned initiatives. In the
near-term, leadership intends to deleverage the corporate balance
sheet and prioritize the paydown of high-cost debt.
In connection with these initiatives, Pitney Bowes has retained
two nationally recognized consulting firms with financial and
operational expertise.
Jill Sutton, Chair of the Board, commented:
“For more than 100 years, Pitney Bowes has maintained its
strength as a business by adapting and evolving at the right points
in time. The decision to appoint Lance and pursue a new set of
strategic initiatives reflects our view that this is another key
inflection point. We’re going to move with greater urgency in the
coming quarters to transform Pitney Bowes into a much more
efficient enterprise focused on its profitable, cash-generating
segments. Strengthening our foundation in the near term will
position us to deliver enhanced value for shareholders, customers,
partners and the Company’s valued employees over the long-term.
Lance’s background as a public company CEO and private equity
operating executive, with specific expertise in technology
services, will help us start to realize this vision as the
reconstituted Board commences a new search for a permanent
successor.”
Kurt Wolf, who collectively with his affiliates owns
approximately 9% of the Company’s shares and is Chair of the Value
Enhancement Committee, added:
“I look forward to working with Lance, our talented management
team and my fellow independent directors to accelerate the pace of
change at Pitney Bowes. While our transformation efforts have
gained some traction in recent months thanks to the work of our
dedicated employees, the Board sees significant opportunity for
much greater – and much faster – progress. We expect to unlock
meaningful value by eliminating excess costs, increasing our return
on invested capital, paying down high-cost debt and simplifying the
corporate structure by quickly completing the GEC strategic review.
The Value Enhancement Committee will also look to identify other
financial, operational and strategic actions for the full Board to
consider. We will leave no stone unturned.”
Mr. Rosenzweig concluded:
“I want to thank the Board for placing its trust in me. In
addition to having clear opportunities for value creation, we have
a winning strategy that I intend to begin executing on immediately.
I look forward to working with Shemin Nurmohamed and Debbie
Pfeiffer to sustain the strong performance of SendTech and Presort,
respectively. I am also excited about working with John Witek, our
Interim CFO, Christopher Johnson, our President of Global Financial
Services, and the other members of the senior management team to
advance important balance sheet and cash optimization efforts.
Together, we can establish the right culture to drive improved
performance and sustained success across every level of the
organization.”
Update on CEO Search Process
The process run by the prior Board did not result in Pitney
Bowes appointing its next permanent CEO. Given the recent
reconstitution of the Board and the establishment of the
aforementioned priorities, a new process is commencing. The Board
will retain a new nationally recognized search firm to support this
process.
Conference Call Information
The Company will host an investor conference call at 8:00 AM ET
on Wednesday, May 29, to introduce Mr. Rosenzweig and discuss the
new strategic initiatives.
Instructions for listening to the call will be available on the
Investor Relations page of the Company’s website at
www.pitneybowes.com.
Lance Rosenzweig Biography
Mr. Rosenzweig is an experienced public company executive and
private equity operating partner with a track record of driving
enhanced value for clients and shareholders. He is the former Chief
Executive Officer of Support.com, Inc., a provider of customer and
technical support solutions and security software. Previously, he
served as Chief Executive Officer of Startek Inc., a global
business process outsourcing company. Mr. Rosenzweig also serves on
the board of directors of GC Parent, LLC and Internap Holding LLC,
and has served as a member of the board at several public and
private companies, including Boingo Wireless, Inc., from 2014 to
2021, and NextGen Healthcare, Inc., from 2012 to 2021. Mr.
Rosenzweig served as an operating partner with Marlin Equity, a
global investment firm with approximately $9 billion of capital
commitments, from 2015 to 2017. Previously, he held various other
leadership roles.
Mr. Rosenzweig has his MBA in Finance and BS in Industrial
Engineering from Northwestern University. He completed executive
education programs on corporate boards and governance at Stanford
Law School and Harvard Business School.
About Pitney Bowes
Pitney Bowes is a global shipping and mailing company that
provides technology, logistics and financial services to more than
90 percent of the Fortune 500. Small business, retail, enterprise
and government clients around the world rely on Pitney Bowes to
remove the complexity of sending mail and parcels. For the latest
announcements and financial results, visit
https://www.pitneybowes.com/us/newsroom.html. For additional
information, visit Pitney Bowes at www.pitneybowes.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240522905180/en/
For Media: Kathleen Raymond, 203.351.7233
kathleen.raymond@pb.com
For Investors: Joe Germani pitneybowes@longacresquare.com
Pitney Bowes (NYSE:PBI)
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