Platform CEO Rakesh Sachdev leaves at short notice

  • Push-out Score determined
  • After about three years in the position
  • Praise and thanks for Sachdev
  • Ben Gliklich taking over
  • Sachdev made a lengthy statement and said 367 words

(exechange) — West Palm Beach, Florida, January 28, 2019 — Rakesh Sachdev, chief executive of Platform, leaves. It is a change at short notice. As announced by Platform Specialty Products Corp. in a news release and in a regulatory filing published on Monday, January 28, 2019, Rakesh Kalra Sachdev leaves his post as Chief Executive Officer at the chemicals company after about three years in the role, effective on the closing date of the previously-announced sale of Platform’s Agricultural Solutions business (the “Arysta Sale”), expected to be January 31, 2019.

Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past 12 months was 8.4 years, according to data compiled by exechange.

Rakesh Sachdev’s duties will be taken over by Benjamin (Ben) Gliklich, currently Executive Vice President of Operations & Strategy of Platform Specialty Products Corporation.

It is a generational change as well. Ben Gliklich is about 28 years younger than Rakesh Sachdev.

Rakesh Sachdev’s move is part of a management shake-up also involving the position of Chief Operating Officer.

As previously announced, Platform has obtained all approvals necessary to complete the sale of Arysta to UPL and expects the transaction to close on January 31, 2019. The closing of this transaction will start a new chapter for Platform, which will change its name to Element Solutions Inc (“ESI” or “Element Solutions”) and be traded on the New York Stock Exchange under the ticker symbol “NYSE:ESI.” As a part of this change, the Company separated its previously reported Performance Solutions segment in the fourth quarter of 2018 into: Electronics and Industrial & Specialty.

With a less levered, more nimble and more efficient business profile, ESI will continue to focus on organic growth from its core portfolio and will pursue measured opportunistic acquisitions to build its capabilities, technologies and product offerings in its existing and adjacent end-markets.

“A natural point in the Company’s evolution for me to step back”

The management change is explained as follows. Sachdev said: “The close of the Arysta transaction will represent a major milestone for Platform. Following the closing, we will have achieved the separation we have been working on since 2017 to create a less levered, more nimble and more focused business. We believe ESI is well positioned for profitable future growth and compelling value creation. This is a natural point in the Company’s evolution for me to step back from day-to-day management, while continuing to contribute as a Director, and make room for the next generation of the Company’s leadership.”

Precise information regarding Rakesh Sachdev’s future plans was not immediately available.

“Retire”

Platform said: “Rakesh Sachdev has announced his intention to retire from his current role of Chief Executive Officer of Platform, effective at closing of the transaction, while remaining an active Board member of the Company.”

Platform further said: “On January 25, 2019, Platform’s board of directors … approved the retirement of Rakesh Sachdev as Platform’s Chief Executive Officer.”

Share price decline

The management change announcement follows a decline in Platform Specialty Products Corporation’s share price of 61 percent since June 2015.

Chaired by Martin E. Franklin

Platform Specialty Products Corporation is chaired by Martin E. Franklin.

Martin E. Franklin, the Company’s founder and a director of Platform since April 2013, has served as the Company’s Chairman since October 2013.

On January 25, 2019, Martin E. Franklin, age 53, currently Chairman of the Board, has been named Executive Chairman of the Board, effective on the Closing Date.

In the position of CEO since 2016

Rakesh Sachdev has served as Chief Executive Officer and as a director of Platform since January 2016.

Prior to joining Platform, Sachdev served as President and Chief Executive Officer of Sigma-Aldrich Corporation (“Sigma-Aldrich”) beginning in 2010.

Sachdev joined Sigma-Aldrich in 2008 as Chief Financial Officer and took on the additional role of Chief Administrative Officer with direct oversight of Sigma-Aldrich’s international business in 2009.

He was Senior Vice President and President Asia Pacific of ArvinMeritor, Inc. (“ArvinMeritor”), a global supplier of engineered systems to the automotive industry, from 2007 to 2008.

At ArvinMeritor, Sachdev also served in other leadership roles, including Interim Chief Financial Officer, Senior Vice President Strategy and Corporate Development and Vice President and General Manager of several of ArvinMeritor’s global businesses from 1999 to 2007.

Prior to joining ArvinMeritor, Sachdev worked for Cummins Inc., a global manufacturer of engines and other industrial products in various leadership roles, including Chief Financial Officer for one of its largest business units, and as Managing Director of its Mexican operations.

Sachdev is also a director of Regal-Beloit Corporation and Edgewell Personal Care Company, and serves on the Board of Trustees of Washington University in St. Louis.

Sachdev holds a M.B.A. from Indiana University, a Masters in Mechanical Engineering from the University of Illinois and a Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology in New Delhi.

Push-out Score determined

The Push-out Score™ determined by exechange gauges the likelihood that a manager was pushed out or felt pressure to leave the position.

exechange reached out to Platform and offered the company the opportunity to comment on the score.

Read the full story in the exechange report 5.2019 ($).