CooperCompanies Names Rosebrough Executive Chair and Raises Buyback Authorization to $3 Billion
Key Facts
CooperCompanies announced an immediate leadership transition, with Al White stepping down as chairman, CEO and a board member, and Walt Rosebrough becoming chairman and taking direct oversight of daily operations, according to a company statement. The company said it has begun a search for a permanent CEO with support from Russell Reynolds. White will remain an employee as a strategic adviser until April 1, 2027. The statement linked the changes to strengthening operational execution, improving business performance and increasing long-term shareholder value. The announcement follows Jana Partners’ call in September for an external search for a new CEO, as the company had lowered its annual guidance.
Jana Partners had urged CooperCompanies to change its leadership and evaluate asset sales, and Reuters reported on September 18 that the fund owned about 1.8% of the company’s shares. Its demands included appointing a new board chairman and searching for a CEO from outside the company. The pressure came after the company cut its annual guidance and ended a review of options for its CooperSurgical unit without selling it, according to a Reuters report. This context places White and Rosebrough’s transition at the center of the company’s response to shareholder pressure, alongside its stated goal of improving performance. The statement does not say Rosebrough’s appointment is part of a board refresh plan.
Rosebrough has executive experience in the medical devices and services sector, having served as CEO of STERIS from 2007 to 2021. A Cooper statement filed with the U.S. Securities and Exchange Commission said STERIS shares generated an annualized return of 18% during his tenure, compared with an annualized return of 10% for the S&P 500. The statement also said the stock’s total return over that period was ten times its value. The company is relying on Rosebrough’s past record as it assigns him interim oversight of operations. But the search for a permanent CEO is still underway, and the statement gave no date for announcing an appointment.
The leadership reshuffle comes as the company faces differing operating pressures across its two units. CooperVision revenue was about $717 million in the third quarter of 2026, unchanged from a year earlier, while CooperSurgical posted revenue of $349.2 million, up 2% year over year. The company said the reduction of U.S. distribution channel inventory at CooperVision weighed on quarterly results and that the impact would continue into the fourth quarter. This means the operational challenge facing the new leadership is tied, at least in the vision unit, to correcting inventory and its lingering effect on results. CooperSurgical, meanwhile, recorded modest revenue growth over the same period.
In September, the company lowered its fiscal 2026 guidance to total revenue of between $4.229 billion and $4.252 billion, with expected organic growth of between 2% and 3%. The range sets a ceiling on growth at a time when the company said third-quarter results were affected by CooperVision inventory. CooperCompanies also continued buying back shares during the quarter, purchasing about 4.9 million shares at an average price of $69.16 per share. After the board expanded the buyback authorization from $2 billion to $3 billion, the company said about $1.5 billion remained available. These figures put improving results and capital management among the issues facing leadership in the coming period.
The next steps center on selecting a permanent CEO and determining how to carry out the business improvement goals announced by the company, while Rosebrough continues to oversee daily operations until the search is completed. Jana Partners had also called for an evaluation of asset sales after the review of CooperSurgical options ended without a deal. The company, meanwhile, kept the unit within its business and reported quarterly revenue of $349.2 million in the third quarter, up 2% year over year. The impact of reducing CooperVision inventory will also continue into the fourth quarter, according to the company’s disclosure. The statement gave no specific date for announcing the new CEO or further details on subsequent operational steps.