-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FNomW3dcYrJhsXxn4GFqKFcY6USvPk3hm0hMXsLSD/XVPoireajohd3NuzQcz5R+ zm+8KkF+TQiQ56Ks/ArCCA== 0000902664-07-001570.txt : 20070427 0000902664-07-001570.hdr.sgml : 20070427 20070427164320 ACCESSION NUMBER: 0000902664-07-001570 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20070427 DATE AS OF CHANGE: 20070427 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: HEXCEL CORP /DE/ CENTRAL INDEX KEY: 0000717605 STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS, MATERIALS, SYNTH RESINS & NONVULCAN ELASTOMERS [2821] IRS NUMBER: 941109521 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-39355 FILM NUMBER: 07796387 BUSINESS ADDRESS: STREET 1: TWO STAMFORD PLAZA STREET 2: 281 TRESSER BLVD., 16TH FLOOR CITY: STAMFORD STATE: CT ZIP: 06901 BUSINESS PHONE: 203-969-0666 MAIL ADDRESS: STREET 1: TWO STAMFORD PLAZA STREET 2: 281 TRESSER BLVD., 16TH FLOOR CITY: STAMFORD STATE: CT ZIP: 06901 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: OSS CAPITAL MANAGEMENT CENTRAL INDEX KEY: 0001218321 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: SC 13D MAIL ADDRESS: STREET 1: 605 THIRD AVE CITY: NEW YORK STATE: NY ZIP: 10158 SC 13D 1 sc13d.txt HEXCEL CORPORATION - SC 13D - -------------------------------------------------------------------------------- SEC POTENTIAL PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF 1746 (11-02) INFORMATION CONTAINED IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL NUMBER. - -------------------------------------------------------------------------------- ---------------------------- UNITED STATES OMB APPROVAL SECURITIES AND EXCHANGE COMMISSION ---------------------------- WASHINGTON, D.C. 20549 OMB Number: 3235-0145 ---------------------------- Expires: December 31, 2007 ---------------------------- Estimated average burden hours per response . . . .11 ---------------------------- SCHEDULE 13D (AMENDMENT NO. ) Under the Securities Exchange Act of 1934 Hexcel Corporation - -------------------------------------------------------------------------------- (Name of Company) Common Stock - -------------------------------------------------------------------------------- (Title of Class of Securities) - -------------------------------------------------------------------------------- (Ordinary Shares) CUSIP 428291108 (CUSIP Number of Class of Securities) Oscar S. Schafer - -------------------------------------------------------------------------------- O.S.S. Capital Management LP 598 Madison Avenue New York, NY 10022 (212) 756-8700 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) April 26, 2007 - -------------------------------------------------------------------------------- (Date of Event which Requires Filing of this Schedule) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. [ ] NOTE: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See ss.240.13d-7 for other parties to whom copies are to be sent. * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 2 OF 17 PAGES - --------------------------------------- ------------------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) O.S.S. Capital Management LP - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 0 NUMBER OF ---------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 4,810,900 EACH ---------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON 0 ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 4,810,900 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 4,810,900 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5) 5.1% (see Item 5) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 3 OF 17 PAGES - --------------------------------------- ------------------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Oscar S. Schafer & Partners I LP - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 0 NUMBER OF ---------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 192,671 EACH ---------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON 0 ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 192,671 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 192,671 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.2% (see Item 5) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 4 OF 17 PAGES - --------------------------------------- ------------------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Oscar S. Schafer & Partners II LP - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 0 NUMBER OF ---------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 2,051,694 EACH ---------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON 0 ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 2,051,694 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 2,051,694 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* ` [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.2% (see Item 5) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 5 OF 17 PAGES - --------------------------------------- ------------------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) O.S.S. Overseas Fund Ltd. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 0 NUMBER OF ---------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 2,493,172 EACH ---------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON 0 ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 2,493,172 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 2,493,172 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.7% (see Item 5) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 6 OF 17 PAGES - --------------------------------------- ------------------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) O.S.S. Advisors LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 0 NUMBER OF ---------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 2,244,365 EACH ---------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON 0 ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 2,244,365 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 2,244,365 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.4% (see Item 5) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 7 OF 17 PAGES - --------------------------------------- ------------------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Schafer Brothers LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 0 NUMBER OF ---------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 4,810,900 EACH ---------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON 0 ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 4,810,900 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 4,810,900 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.1% (see Item 5) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 8 OF 17 PAGES - --------------------------------------- ------------------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Oscar S. Schafer - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 0 NUMBER OF ---------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 4,810,900 EACH ---------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON 0 ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 4,810,900 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 4,810,900 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.1% (see Item 5) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 9 OF 17 PAGES - --------------------------------------- ------------------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Peter J. Grondin - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 800 NUMBER OF ---------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 EACH ---------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON 800 ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 800 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.0% (see Item 5) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 10 OF 17 PAGES - --------------------------------------- ------------------------------- ITEM 1. SECURITY AND ISSUER This statement on Schedule 13D relates to the ordinary shares ("Ordinary Shares"), of Hexcel Corporation., a Delaware corporation (the "Company"). The address of the principal executive offices of the Company is: Two Stamford Plaza 281 Tresser Blvd., 16th Floor Stamford CT 06901 ITEM 2. IDENTITY AND BACKGROUND (a), (b), (c) and (f). This statement on Schedule 13D is filed on behalf of the following persons (each a "Reporting Person"), in each case with respect to the Ordinary Shares indicated: (i) Oscar S. Schafer & Partners I LP, a Delaware limited partnership ("OSS I LP"), with respect to the Ordinary Shares beneficially owned by it. The sole general partner of OSS I LP is O.S.S. Advisors LLC (see below at (iii)). The principal business of OSS I LP is to invest in securities. The address of its principal office is: 598 Madison Avenue, New York, NY 10022. (ii) Oscar S. Schafer & Partners II LP, a Delaware limited partnership ("OSS II LP" and together with OSS I LP, the "Partnerships"), with respect to the Ordinary Shares beneficially owned by it. The sole general partner of OSS II LP is O.S.S. Advisors LLC (see below at (iii)). The principal business of OSS II LP is to invest in securities. The address of its principal office is: 598 Madison Avenue, New York, NY 10022. (iii) O.S.S. Advisors LLC, a Delaware limited liability company (the "General Partner"), which is the general partner of each of the Partnerships, with respect to the Ordinary Shares beneficially owned by each of the Partnerships. SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 11 OF 17 PAGES - --------------------------------------- ------------------------------- The members of the General Partner are: Mr. Oscar S. Schafer (see below at (vii)) and Andrew J. Goffe. Mr. Goffe is a citizen of the United States of America and his principal occupation is investment management. The principal business of the General Partner is investment management. The address of its principal office is: 598 Madison Avenue, New York, NY 10022. (iv) O.S.S. Overseas Fund Ltd., a Cayman Islands exempted company ("OSS Overseas"), with respect to the Ordinary Shares beneficially owned by it. The directors of OSS Overseas are: (1) Mr. Oscar S. Schafer (see below at (vii)). (2) Jane Fleming. Ms. Fleming is an assistant client accountant at Queensgate Bank & Trust Company Ltd., 5th Floor, Harbour Place, 103 South Church Street, P.O. Box 30464 SMB, Grand Cayman, Cayman Islands. Ms. Fleming is a British citizen. (3) J.D. Hunter. Mr. Hunter is the Managing Director of Queensgate Bank & Trust Company Ltd., 5th Floor, Harbour Place, 103 South Church Street, P.O. Box 30464 SMB, Grand Cayman, Cayman Islands. Mr. Hunter is a British citizen. The principal business of OSS Overseas is to invest in securities. The address of its principal office is: SEI Investments Global (Cayman) Limited, Harbor Place, 5th Floor, South Church Street, PO Box 30464 SMB, Grand Cayman, Cayman Islands, British West Indies. (v) O.S.S. Capital Management LP, a Delaware limited partnership, (the "Investment Manager"), which serves as investment manager and management company, to OSS Overseas and the Partnerships, respectively, and has investment discretion with respect to the Ordinary Shares beneficially owned by OSS Overseas and the Partnerships. The sole general partner of Investment Manager is Schafer Brothers LLC (see below at (vi)). The principal business of Investment Manager is investment management. The address of its principal office is: 598 Madison Avenue, New York, NY 10022. (vi) Schafer Brothers LLC, a Delaware limited liability company ("SB LLC"), which is the general partner of the Investment Manager, with respect to the Ordinary Shares beneficially owned by OSS Overseas and the Partnerships. SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 12 OF 17 PAGES - --------------------------------------- ------------------------------- The sole member of SB LLC is: Mr. Oscar S. Schafer (see below at (vii)). The principal business of SB LLC is to serve as the general partner of the Investment Manager. The address of its principal office is: 598 Madison Avenue, New York, NY 10022. (vii) Mr. Oscar S. Schafer ("Mr. Schafer"), who serves as the senior managing member of the General Partner and SB LLC, with respect to the Ordinary Shares beneficially owned by OSS Overseas and the Partnerships. Mr. Schafer is a citizen of the United States of America and his principal business address is: 598 Madison Avenue, New York, NY 10022. (viii) Mr. Peter J. Grondin ("Mr. Grondin"), who serves as an equity analyst for the General Partner and Investment Manager, owns Ordinary Shares for his personal account. Mr. Grondin is a citizen of the United States of America and his principal business address is: 598 Madison Avenue, New York, NY 10022. (d) None of the Reporting Persons, nor, to the best of their knowledge, any of their respective directors, executive officers, control persons, general partners or members has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). (e) None of the Reporting Persons, nor, to the best of their knowledge, any of their respective directors, executive officers, control persons, general partners or members has, during the last five years, been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and, as a result of such proceeding, was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 13 OF 17 PAGES - --------------------------------------- ------------------------------- ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. The total amount of funds used by each of the Partnerships and OSS Overseas to purchase the securities of the Company as described herein was furnished from the investment capital of the Partnerships and OSS Overseas, as applicable. Included in the total securities beneficially owned by the Investment Manager, SB LLC and Mr. Schafer were 73,363 Ordinary Shares which were held for the benefit of a third party in a separately managed account (the "Managed Account") over which the Investment Manager had investment discretion. Mr. Grondin has investment discretion over 800 Ordinary Shares purchased for his personal account. ITEM 4. PURPOSE OF TRANSACTION. On March 9, 2007, the Investment Manager sent a letter to the Company expressing its concern regarding the Company's operating performance relative to its peers and with the management's lack of concern regarding the gap in performance. The Investment Manager also noted that a member of the Company's Board of Directors was stepping down and suggested a candidate for his replacement. On April 9, 2007, the Company's Chief Executive Officer visited the Investment Manager's offices. In a letter on April 26, 2007, the Investment Manager reiterated its concern that the Company was underperforming. The Investment Manager requested a committee of independent directors be formed and that the committee retain an independent investment bank to advise as to how shareholder value could be best maximized. The Reporting Persons intend to review their investment in the Company on a continuing basis and may engage in discussions with management, the Board of Directors, other shareholders of the Company and other relevant parties concerning the business, operations, board composition, management, strategy and future plans of the Company. Depending on various factors including, without limitation, the Company's financial position and strategic direction, the outcome of the discussions and actions referenced above, actions taken by the Board of Directors, price levels of the shares, other investment opportunities available to the Reporting Persons, conditions in the securities market and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Company as they deem appropriate including, without limitation, purchasing additional shares or selling some or all of their shares, engaging in short selling of or any hedging or similar transactions with respect to the shares and/or otherwise changing their intention with respect to any and all matters referred to in Item 4 of Schedule 13D. Copies of the March 9, 2007 and the April 26, 2007 letters are attached hereto as Exhibit A and Exhibit B and are incorporated by reference. SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 14 OF 17 PAGES - --------------------------------------- ------------------------------- ITEM 5. INTEREST IN SECURITIES OF THE COMPANY. (a), (b) The following table sets forth the aggregate number and percentage of the outstanding Ordinary Shares beneficially owned by each of the Reporting Persons named in Item 2, as of the date hereof. The percentage of the outstanding Ordinary Shares beneficially owned is based on the 94,195,000 Ordinary Shares (based on calculations made in accordance with Rule 13d-3(d)). The table also sets forth the number of Ordinary Shares with respect to which each Reporting Person has the sole power to vote or to direct the vote, shared power to vote or to direct the vote, sole power to dispose or to direct the disposition, or shared power to dispose or to direct the disposition, in each case as of the date hereof.
------------------------- ---------------------- ----------------- -------------------- -------------------- Reporting Person Aggregate Number of Approximate Number of Ordinary Number of Ordinary Ordinary Shares Percentage Shares: Sole Power Shares: Shared Beneficially Owned to Vote or to Power to Vote or Dispose to Dispose ------------------------ --------------------- ---------------- ------------------ -------------------- Investment Manager 4,810,900 5.1% 0 4,810,900 ------------------------ --------------------- ---------------- ------------------ -------------------- OSS I 192,671 0.2% 0 192,671 ------------------------ --------------------- ---------------- ------------------ -------------------- OSS II 2,051,694 2.2% 0 2,051,694 ------------------------ --------------------- ---------------- ------------------ -------------------- OSS Overseas 2,493,172 2.7% 0 2,493,172 ------------------------ --------------------- ---------------- ------------------ -------------------- General Partner 2,244,365 2.4% 0 2,244,365 ------------------------ --------------------- ---------------- ------------------ -------------------- SB LLC 4,810,900 5.1% 0 4,810,900 ------------------------ --------------------- ---------------- ------------------ -------------------- Mr. Schafer 4,810,900 5.1% 0 4,810,900 ------------------------ --------------------- ---------------- ------------------ -------------------- Managed Account 73,363 .1% 0 73,363 ------------------------ --------------------- ---------------- ------------------ -------------------- Mr. Grondin 800 0% 800 0 ------------------------ --------------------- ---------------- ------------------ --------------------
Each of the transactions listed above were effected in the open market. The Investment Manager, the General Partner, SB LLC, Mr. Schafer and Mr. Grondin expressly declare that this filing shall not be construed as an admission that any of them is, for the purposes of sections 13(d) or 13(g) of the Act, the beneficial owner of any securities covered by this filing. SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 15 OF 17 PAGES - --------------------------------------- ------------------------------- (c) Except for the transactions set forth below, during the last sixty days the Reporting Persons have effected no transactions with respect to the Ordinary Shares. --------------------------------------------------------------------------- Reporting Person Date Buy or Number of Price Per Sell Ordinary Shares Share --------------------------------------------------------------------------- OSS I 3/7/2007 Buy 11,609 $18.60 --------------------------------------------------------------------------- OSS I 3/7/2007 Buy 820 $18.49 --------------------------------------------------------------------------- OSS I 3/8/2007 Buy 9,196 $19.17 --------------------------------------------------------------------------- OSS I 3/8/2007 Buy 1,621 $19.04 --------------------------------------------------------------------------- OSS I 3/9/2007 Buy 12,159 $19.40 --------------------------------------------------------------------------- OSS I 3/9/2007 Buy 2,027 $19.38 --------------------------------------------------------------------------- OSS I 3/12/2007 Buy 10,133 $19.64 --------------------------------------------------------------------------- OSS I 3/13/2007 Buy 10,133 $19.23 --------------------------------------------------------------------------- OSS I 3/14/2007 Buy 4,053 $18.73 --------------------------------------------------------------------------- OSS I 3/16/2007 Buy 6,080 $19.21 --------------------------------------------------------------------------- OSS I 3/19/2007 Buy 6,080 $19.32 --------------------------------------------------------------------------- OSS I 3/20/2007 Buy 6,080 $19.92 --------------------------------------------------------------------------- OSS I 4/12/2007 Buy 3,440 $19.95 --------------------------------------------------------------------------- OSS I 4/24/2007 Buy 6,954 $21.50 --------------------------------------------------------------------------- OSS I 4/25/2007 Buy 6,403 $21.91 --------------------------------------------------------------------------- OSS I 4/26/2007 Buy 4,754 $21.58 --------------------------------------------------------------------------- OSS II 3/7/2007 Buy 102,408 $18.60 --------------------------------------------------------------------------- OSS II 3/7/2007 Buy 8,750 $18.49 --------------------------------------------------------------------------- OSS II 3/8/2007 Buy 98,108 $19.17 --------------------------------------------------------------------------- OSS II 3/8/2007 Buy 17,296 $19.04 --------------------------------------------------------------------------- OSS II 3/9/2007 Buy 129,715 $19.40 --------------------------------------------------------------------------- OSS II 3/9/2007 Buy 21,619 $19.38 --------------------------------------------------------------------------- OSS II 3/12/2007 Buy 108,095 $19.64 --------------------------------------------------------------------------- OSS II 3/13/2007 Buy 108,095 $19.23 --------------------------------------------------------------------------- OSS II 3/14/2007 Buy 43,238 $18.73 --------------------------------------------------------------------------- OSS II 3/16/2007 Buy 64,857 $19.21 --------------------------------------------------------------------------- OSS II 3/19/2007 Buy 64,857 $19.32 --------------------------------------------------------------------------- OSS II 3/20/2007 Buy 64,857 $19.92 --------------------------------------------------------------------------- OSS II 4/12/2007 Buy 36,730 $19.95 --------------------------------------------------------------------------- OSS II 4/24/2007 Buy 74,237 $21.50 --------------------------------------------------------------------------- OSS II 4/25/2007 Buy 68,360 $21.91 --------------------------------------------------------------------------- OSS II 4/26/2007 Buy 46,605 $21.58 --------------------------------------------------------------------------- OSS Overseas 3/7/2007 Buy 111,283 $18.60 --------------------------------------------------------------------------- OSS Overseas 3/7/2007 Buy 10,667 $18.49 --------------------------------------------------------------------------- OSS Overseas 3/8/2007 Buy 119,596 $19.17 --------------------------------------------------------------------------- OSS Overseas 3/8/2007 Buy 21,083 $19.04 --------------------------------------------------------------------------- OSS Overseas 3/9/2007 Buy 158,126 $19.40 --------------------------------------------------------------------------- OSS Overseas 3/9/2007 Buy 26,354 $19.38 --------------------------------------------------------------------------- OSS Overseas 3/12/2007 Buy 131,772 $19.64 --------------------------------------------------------------------------- OSS Overseas 3/13/2007 Buy 131,772 $19.23 --------------------------------------------------------------------------- OSS Overseas 3/14/2007 Buy 52,709 $18.73 --------------------------------------------------------------------------- OSS Overseas 3/16/2007 Buy 79,063 $19.21 --------------------------------------------------------------------------- OSS Overseas 3/19/2007 Buy 79,063 $19.32 --------------------------------------------------------------------------- OSS Overseas 3/20/2007 Buy 79,063 $19.92 --------------------------------------------------------------------------- OSS Overseas 4/12/2007 Buy 44,830 $19.95 --------------------------------------------------------------------------- OSS Overseas 4/24/2007 Buy 90,609 $21.50 --------------------------------------------------------------------------- OSS Overseas 4/25/2007 Buy 83,437 $21.91 --------------------------------------------------------------------------- OSS Overseas 4/26/2007 Buy 48,641 $21.58 --------------------------------------------------------------------------- Managed Account 3/7/07 Buy 43,363 $18.49 --------------------------------------------------------------------------- Managed Account 3/29/07 Buy 30,000 $20.07 --------------------------------------------------------------------------- (d) The (i) limited partners and the General Partner of the Partnerships, (ii) the shareholders and the advisor of OSS Overseas and (iii) the third party which has beneficial ownership over the Managed Account have the right to participate in the receipt of dividends from, and the proceeds from the sale of, the securities held for the Partnerships and OSS Overseas, respectively. (e) Not applicable. SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 16 OF 17 PAGES - --------------------------------------- ------------------------------- SIGNATURES After reasonable inquiry and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: April 27, 2007 OSCAR S. SCHAFER By:/s/ Oscar S. Schafer -------------------------------------------------- Oscar S. Schafer, individually O.S.S. CAPITAL MANAGEMENT LP By: Schafer Brothers LLC, as General Partner By:/s/ Oscar S. Schafer --------------------------------------------- Name: Oscar S. Schafer Title: Senior Managing Member OSCAR S. SCHAFER & PARTNERS I LP By: O.S.S. Advisors LLC, as General Partner By:/s/ Oscar S. Schafer --------------------------------------------- Name: Oscar S. Schafer Title: Senior Managing Member SCHEDULE 13D - --------------------------------------- ------------------------------- CUSIP NO. 428291108 PAGE 17 OF 17 PAGES - --------------------------------------- ------------------------------- OSCAR S. SCHAFER & PARTNERS II LP By: O.S.S. Advisors LLC, as General Partner By:/s/ Oscar S. Schafer --------------------------------------------- Name: Oscar S. Schafer Title: Senior Managing Member O.S.S. OVERSEAS FUND LTD. By:/s/ Oscar S. Schafer --------------------------------------------- Name: Oscar S. Schafer Title: Director O.S.S. ADVISORS LLC By:/s/ Oscar S. Schafer --------------------------------------------- Name: Oscar S. Schafer Title: Senior Managing Member SCHAFER BROTHERS LLC By:/s/ Oscar S. Schafer -------------------------------------------------- Name: Oscar S. Schafer Title: Senior Managing Member PETER J. GRONDIN By:/s/ Peter J. Grondin -------------------------------------------------- Name: Peter J. Grondin, individually EX-99 2 exh1.txt LETTER TO DAVID BERGES-MARCH 9TH, 2007 O.S.S. Capital Management LP 598 Madison Avenue New York, NY 10022-1603 Tel. (212) 756-8700 Fax. (212) 756-8701 March 9,2007 Mr. David Berges Chairman and Chief Executive Officer Hexcel Corporation Two Stamford Plaza 281 Tresser Boulevard Stamford, CT 06901 Dear David: As a long-term shareholder of Hexcel, we are concerned about the company's operating performance relative to its peers and with management's apparent lack of concern about this matter. Although Hexcel's operating margin expansion from 7% in 2002 to 10% in 2006 seems respectable, a different picture emerges when this performance is benchmarked against other industry competitors. Specifically, Cytec Industries' Engineered Materials segment generated operating margins of 18%, and the difference is even more pronounced at Toray Industries. For the nine months ended December 2006, Toray's Composite Materials segment had operating margins of over 25%. In the past, you have said that the margin discrepancy between Hexcel and its competitors was due to corporate allocation nuances and/or product-mix issues. However, after conducting an extensive industry analysis, including talking to public and private competitors, we believe the lower margins are due to mismanagement of the company. Had Hexcel achieved operating margins of only 17% on its 2006 revenues, the company would have earned an additional $78 million in operating income. Applying the current 17x multiple of enterprise value to operating income, this difference would result in a value increase of more than one billion dollars. Therefore, at current margins of lo%, shareholders are "forgoing" over $14.00 per share. You do not seem concerned about this gap. Although management has outlined a future target of mid-teens operating margins, by the time the company achieves this goal it will still be underperforming its competition. The management and the Board must develop a plan of action for closing the gap; if you are unwilling or unable to do this, then it is incumbent on the Board to seek strategic alternatives and/or sell to a buyer that can run the company more profitably. On a final note, it is our understanding that Mr. Martin L. Solomon will be stepping down as a Director of Hexcel in May. We have a candidate in mind who would be a valuable addition to the Board and would like to submit him for your consideration. We look forward to your response. Sincerely, - ---------------------- ----------------------- --------------------- Oscar S. Schafer Andrew J. Goffe Peter J. Grondin cc: Joel S. Beckman H. Arthur Bellows Lynn Brubaker Jeffrey C. Campbell Sandra L. Derickson David C. Hurley David L. Pugh EX-99 3 exh2.txt LETTER TO DAVID BERGES - APRIL 26, 2007 O.S.S. Capital Management LP 598 Madison Avenue New York, NY 10022-1 603 Tel. (212) 756-8700 Fax. (21 2) 756-8701 April 26, 2007 Mr. David Berges Chairman and Chief Executive Officer Hexcel Corporation Two Stamford Plaza 281 Tresser Boulevard Stamford, CT 06901 Dear David: Thank you for visiting our office on April 9th. The answers we received reinforced our views outlined in our letter dated March 9, 2007 (which is attached) that (1) Hexcel is under-earning, (2) management is not addressing the shortfall in earnings, and (3) the shareholders are suffering from this situation. We think that Hexcel would benefit from an independent review of its prospects and strategy with a view toward taking action to maximize shareholder value. To accomplish this, we request a committee of independent directors be formed and that the committee retain an independent investment bank to advise as to how shareholder value can best be maximized. We are filing a schedule 13D with the Securities and Exchange Commission disclosing our ownership of 4,810,900 shares of Hexcel stock. This letter and our earlier letter will be attached to that filing. We look forward to the Board's response. Sincerely, - ---------------------- ----------------------- --------------------- Oscar S. Schafer Andrew J. Goffe Peter J. Grondin cc: Joel S. Beckman H. Arthur Bellows Lynn Brubaker Jeffrey C. Campbell Sandra L. Derickson David C. Hurley David L. Pugh -----END PRIVACY-ENHANCED MESSAGE-----