CTPartners’ CEO Resigns; Rival DHR Acquires Growing Stake in Company
March 12, 2015 – Brian M. Sullivan tendered his resignation from embattled CTPartners after the markets closed yesterday afternoon on a day which saw the company’s stock price swing up by nearly 20 percent on anticipation of the news. The company’s board of directors announced the appointment of CTPartners’ vice chairman, Sylvain Dhenin, as CTP’s new chief. Mr. Sullivan has agreed to step down after more than 10 years at the helm, effective April 2. The board is conducting a search for a new non-executive director to chair the board. “Sylvain is a world-class executive with a sophisticated understanding of global leadership needs and a strong track record of success in growing CTPartners’ European operation and board practice. He has effectively operated as the No. 2 executive at CTPartners, has the complete trust and confidence of partners and the board, and is the ideal person to lead CTPartners going forward,” said Thomas Testwuide, chairman of the company’s nominating committee. Mr. Dhenin joined CTPartners nearly nine years ago and during that time has grown CTPartners’ European offices from two to 15 in eight countries. Prior to joining CTPartners, Mr. Dhenin was managing partner of Whitehead Mann SAS, the French branch of Whitehead Mann plc. “I am looking forward to building upon CTPartners’ success, and focusing on the firm’s strategic initiatives to better serve our clients and enhance shareholder value,” said Mr. Dhenin. How Mr. Dhenin enhances shareholder value remains a wide open question, given today’s early morning news that rival DHR International has again raised its ownership stake in the company, from 6.3 to 7.3 percent, buying some 635,000 shares in total since January. Last month, DHR submitted an unsolicited acquisition proposal to the board of CTPartners to acquire 100 percent of its equity. “We now look forward to having our proposal fully vetted and approved,” said David H. Hoffmann, the principal shareholder of DHR and founder of Osprey Capital LLC. “As the third largest shareholder of the company, we are in it to win it and we will. We are totally committed to getting this deal done.” Mr. Hoffmann has gone so far as to propose a slate of blue chip board candidates to the CTPartners’ board – including William Perez (former president and CEO of Wm. Wrigley Jr. Company, Nike and SC Johnson); William Farley (current chairman and president of private equity firm LV Ventures); William Smithburg (former chairman, president and CEO of The Quaker Oats Company); John Jastrem (current chairman and CEO of Callison LLC); Daniel Connors (turnaround specialist and former EVP and CAO of Kinko’s); and Geoffrey Hoffmann (current CEO of DHR International). “The collective expertise of our board nominees will help drive maximum value for shareholders while fostering an employee centric environment,” said Mr. Hoffmann.
