Blackhawk to add two directors in pact with activist Jana Partners

Blackhawk Network Holdings Inc , a seller of gift and other payment cards, said on Monday it would add two independent directors to its board in an agreement with activist investor Jana Partners LLC.

As part of the pact, Blackhawk will form a cost savings committee comprising four members that will include the two new directors, Robert Henske and Jeffrey Fox.

Pleasanton, California-based Blackhawk, which partners with retailers such as Staples Inc and Amazon.com Inc to sell gift cards, was spun off from U.S. grocery chain Safeway Inc three years ago.

Jana, which disclosed a 6.2 percent stake in Safeway in 2013, had pushed the company to consider strategic alternatives and shed unprofitable units. (reut.rs/2nroqGg)

Safeway sold itself to private equity firm Cerberus Capital in a $9.4 billion deal and merged with U.S. grocer Albertsons Companies Inc.

Jana currently owns a 4.7 percent stake in Blackhawk.

Blackhawk also said on Monday that Chief Financial Officer Jerry Ulrich would step down.

The gift card provider said it would restructure equity compensation for some of its top executives, starting 2018.