D.C. Capital Issues Open Letter To Stockholders Of Superior Industries International Urging Shareholders To Vote For Fund's Board Nominees

Letter From D.C. Capital:   February 3, 2020 Dear Fellow Stockholders, D.C. Capital Partners, L.P. ("we" or "D.C. Capital") is a significant stockholder of Superior Industries International,

Benzinga · 02/03/2020 22:37

Letter From D.C. Capital:

 

February 3, 2020

Dear Fellow Stockholders,

D.C. Capital Partners, L.P. ("we" or "D.C. Capital") is a significant stockholder of Superior Industries International, Inc. (the "Company" or "Superior"), beneficially owning 1.2 million shares of the Company's common stock or approximately 4.8% of the outstanding common stock.  We are not a traditional activist investor.  In fact, this is our first public letter of this nature in our 28 years of operating.  We are writing because we have grown increasingly concerned with the Company's prolonged underperformance and lack of meaningful response from the Company's Board of Directors (the "Board") to address this underperformance. 

For many months leading up to this letter, we sought to engage with the Company to address our concerns with the Company's performance and persistently low stock price.  In our view, the Board's poor decisions and oversight have materially and adversely affected the Company's operating results, led the Company to be highly leveraged, encumbered its ability to change, and depressed its stock price.   While we had hoped to keep our discussions with the Company private, the Board, led by Chairman Timothy C. McQuay, seems too complacent with the status quo to make changes.  When we wrote and requested that the Board be reduced in size and refreshed, Mr. McQuay remarked that "the Board is appropriately sized and incorporates the right skillset to address the challenges and pursue the opportunities ahead of Superior."  That response is hard to accept given it ignores the Board's stewardship over the Company's disastrous stock price and operating performance.

In our view, the Board lacks the requisite leadership to drive the changes necessary to restore value for all stockholders.   Accordingly, we felt compelled to take the step of nominating our own candidate, Raynard D. Benvenuti, for election to the Board at the 2020 Annual Meeting of Stockholders (the "2020 Annual Meeting").   We strongly believe that Mr. Benvenuti, who possesses over 30 years of experience as a senior executive and advisor to various aerospace, automotive and manufacturing companies, including in turnaround situations, will bring a stockholder results-oriented mindset to the Board to change the moribund Boardroom dynamics that we believe have hampered Superior's progress.