Sensient Technologies Corp., in a letter urging shareholders to vote against activist hedge fund shareholder FrontFour Master Fund Ltd. at its upcoming shareholders meeting, said it is committed to driving operating margins in its flavors and fragrances group into the high teens over the medium term.
“Our plan – which combines investment to drive revenue and margin growth with the return of capital to shareholders – is the product of our board’s carefully considered, prudent capital-allocation strategy,” Sensient wrote in a letter to shareholders (click here to view the entire letter).
FrontFour has proposed changes and said Sensient's proposed share repurchase program could be increased significantly without threatening the company's investment grade credit rating.
Sensient’s annual meeting is scheduled for April 24, 2014.
