Home Economy Economic Activity Texas-based activist investor wages proxy war with AstroNova

Texas-based activist investor wages proxy war with AstroNova

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PBN Staff

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05/23/2025

ASTRONOVA INC., an electronics manufacturer based in West Warwick, is facing a proxy war from Askeladden Capital Management LLC, a Texas-based activist investor that is seeking to replace AstroNova's interdependent board members at the company's annual meeting in Boston on July 9.

WEST WARWICK – AstroNova Inc. is facing a proxy war from a Texas-based activist investor that is seeking to replace its interdependent board members at the company’s annual meeting in Boston on July 9. Askeladden Capital Management LLC – owned by Samir Patel, who has a 9.1% stake in AstroNova – has nominated Jeff Sands,

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WEST WARWICK – AstroNova Inc. is facing a proxy war from a Texas-based activist investor that is seeking to replace its interdependent board members at the company's annual meeting in Boston on July 9. Askeladden Capital Management LLC – owned by Samir Patel, who has a 9.1% stake in AstroNova – has nominated Jeff Sands, Shawn Kravetz, Ryan Oviatt, Boyd Roberts and Patel to take over the board of the electronics manufacturer based in Rhode Island. In a proxy statement on April 29, Patel claims AstroNova has suffered several strategic and operational missteps since fiscal year 2022, which include an ink quality issue that persisted for four years and the company spending $18.76 million in cash and assuming $3.4 million in debt to acquire Portugal-based printing firm MTEX in May 2024. “MTEX was expected to profitably contribute $8 [million] to $10 million in revenue during FY2025, but actually only contributed $4.2 million, with an operating loss of $16.9 million, including a goodwill impairment of $13.4 million,” Patel said. “As a result of the lower earnings and increased debt due to the MTEX acquisition, the company breached its debt covenants and suffered an event of default under its credit facility during the quarter ended Jan. 31, 2025.” Patel also said AstroNova missed profitability targets. “If you invested $100 in AstroNova when Greg Woods became CEO on Feb. 1, 2014, your investment would be worth less than $67 as of April 18, 2025 – a 33% negative total shareholder return during a period slightly exceeding 11 years,” Patel said. In a proxy statement on May 19, AstroNova urged its shareholders to to vote for the incumbent board members – Alexis Michas, Darius Nevin, Mitchell Quian, Yvonne E. Schlaeppi, Richard Warzala and Gregory A. Woods. The company said the current leadership has transformed AstroNova’s capabilities, product mix and scale, delivering 7.5% compound annual revenue growth since Woods’ appointment as CEO. AstroNova said Patel is attempting to disrupt this plan by replacing the company’s highly qualified board members with his unfit nominees, who collectively lack relevant industry expertise, have little public company leadership experience, and bring no added value or perspective to the strategic direction of the company. “On one side is a board of directors and management team implementing a long-term strategy to create a scalable, relevant business in the aerospace and product identification markets which has recently achieved milestones that can propel its future growth and profitability,” AstroNova said it its proxy statement. “On the other side is an activist pushing to totally disrupt our progress with a slate of five unqualified directors that could derail the progress made over the last several years to expand addressable markets and create autonomy with our supply chain.” AstroNova will announce its earnings for the first quarter of fiscal year 2026 on June 5.