UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 6)*
Ecology and Environment, Inc.
(Name of Issuer)
Class A Common Stock, $0.01 par value
(Title of Class of Securities)
278878103
(CUSIP Number)
Mill Road Capital II, L.P.
Attn: Thomas E. Lynch
382 Greenwich Avenue
Suite One
Greenwich, CT 06830
203-987-3500
With copies to:
Peter M. Rosenblum, Esq. Foley Hoag LLP 155 Seaport Blvd. Boston, MA 02210 617-832-1151 |
Paul Bork, Esq. Foley Hoag LLP 155 Seaport Blvd. Boston, MA 02210 617-832-1113 |
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
April 10, 2017
(Date of Event which Requires Filing of this Statement)
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 §§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 §240.13d-7 for other parties to whom copies are sent.
* | The remainder of this cover page shall be filled out for a reporting persons 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).
CUSIP No. 278878103 | 13D | Page 2 of 7 Pages |
1. | Names of Reporting Persons.
Thomas E. Lynch | |||||
2. | Check the Appropriate Box if a Member of a Group (See Instructions) (a) ☐ (b) ☐
| |||||
3. | SEC Use Only
| |||||
4. | Source of Funds (See Instructions)
AF | |||||
5. | Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) ☐
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6. | Citizenship or Place of Organization
USA | |||||
Number of Shares Beneficially Owned by Each Reporting Person With
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7. | Sole Voting Power
| ||||
8. | Shared Voting Power
463,072 | |||||
9. | Sole Dispositive Power
| |||||
10. | Shared Dispositive Power
463,072 | |||||
11. |
Aggregate Amount Beneficially Owned by Each Reporting Person
463,072 | |||||
12. | Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) ☐
| |||||
13. | Percent of Class Represented by Amount in Row (11)
15.43% | |||||
14. | Type of Reporting Person (See Instructions)
HC; IN |
CUSIP No. 278878103 | 13D | Page 3 of 7 Pages |
1. | Names of Reporting Persons.
Scott P. Scharfman | |||||
2. | Check the Appropriate Box if a Member of a Group (See Instructions) (a) ☐ (b) ☐
| |||||
3. | SEC Use Only
| |||||
4. | Source of Funds (See Instructions)
AF | |||||
5. | Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) ☐
| |||||
6. | Citizenship or Place of Organization
USA | |||||
Number of Shares Beneficially Owned by Each Reporting Person With
|
7. | Sole Voting Power
| ||||
8. | Shared Voting Power
463,072 | |||||
9. | Sole Dispositive Power
| |||||
10. | Shared Dispositive Power
463,072 | |||||
11. |
Aggregate Amount Beneficially Owned by Each Reporting Person
463,072 | |||||
12. | Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) ☐
| |||||
13. | Percent of Class Represented by Amount in Row (11)
15.43% | |||||
14. | Type of Reporting Person (See Instructions)
HC; IN |
CUSIP No. 278878103 | 13D | Page 4 of 7 Pages |
1. | Names of Reporting Persons
Mill Road Capital II GP LLC | |||||
2. | Check the Appropriate Box if a Member of a Group (See Instructions) (a) ☐ (b) ☐
| |||||
3. | SEC Use Only
| |||||
4. | Source of Funds (See Instructions)
AF | |||||
5. | Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) ☐
| |||||
6. | Citizenship or Place of Organization
Delaware | |||||
Number of Shares Beneficially Owned by Each Reporting Person With
|
7. | Sole Voting Power
463,072 | ||||
8. | Shared Voting Power
| |||||
9. | Sole Dispositive Power
463,072 | |||||
10. | Shared Dispositive Power
| |||||
11. |
Aggregate Amount Beneficially Owned by Each Reporting Person
463,072 | |||||
12. | Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) ☐
| |||||
13. | Percent of Class Represented by Amount in Row (11)
15.43% | |||||
14. | Type of Reporting Person (See Instructions)
HC; OO |
CUSIP No. 278878103 | 13D | Page 5 of 7 Pages |
1. | Names of Reporting Persons.
Mill Road Capital II, L.P. | |||||
2. | Check the Appropriate Box if a Member of a Group (See Instructions) (a) ☐ (b) ☐
| |||||
3. | SEC Use Only
| |||||
4. | Source of Funds (See Instructions)
WC | |||||
5. | Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) ☐
| |||||
6. | Citizenship or Place of Organization
Delaware | |||||
Number of Shares Beneficially Owned by Each Reporting Person With
|
7. | Sole Voting Power
463,072 | ||||
8. | Shared Voting Power
| |||||
9. | Sole Dispositive Power
463,072 | |||||
10. | Shared Dispositive Power
| |||||
11. |
Aggregate Amount Beneficially Owned by Each Reporting Person
463,072 | |||||
12. | Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) ☐
| |||||
13. | Percent of Class Represented by Amount in Row (11)
15.43% | |||||
14. | Type of Reporting Person (See Instructions)
PN |
CUSIP No. 278878103
This Amendment No. 6 to the joint statement on Schedule 13D with respect to the Class A Common Stock, $0.01 par value, of Ecology and Environment, Inc., a New York corporation filed by the undersigned on July 23, 2015, as amended by Amendment No. 1 filed on October 28, 2016, by Amendment No. 2 filed on March 2, 2017, by Amendment No. 3 filed on March 9, 2017, by Amendment No. 4 filed on March 22, 2017, and by Amendment No. 5 filed on April 4, 2017 (collectively, the Schedule 13D), further amends and supplements the Schedule 13D as follows:
1. Item 4 of the Schedule 13D shall hereby be amended by inserting the following paragraph between the fourteenth and fifteenth paragraphs:
On April 10, 2017, the Fund delivered a letter to the stockholders of the Issuer, attached hereto as Exhibit 24, urging them to vote the GREEN proxy card to elect the Nominees to the board of directors of the Issuer in connection with the Funds potential solicitation of proxies in support of the Nominees.
2. Except as expressly modified hereby, all statements contained in the Schedule 13D remain unchanged.
[signature pages follow]
CUSIP No. 278878103
Signature
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
DATE: | April 10, 2017 | |
MILL ROAD CAPITAL II, L.P. | ||
By: | Mill Road Capital II GP LLC, | |
its General Partner | ||
By: | /s/ Justin C. Jacobs | |
Justin C. Jacobs | ||
Management Committee Director | ||
MILL ROAD CAPITAL II GP LLC | ||
By: | /s/ Justin C. Jacobs | |
Justin C. Jacobs | ||
Management Committee Director | ||
THOMAS E. LYNCH | ||
By: | /s/ Justin C. Jacobs | |
Justin C. Jacobs, duly authorized | ||
SCOTT P. SCHARFMAN | ||
By: | /s/ Justin C. Jacobs | |
Justin C. Jacobs, duly authorized |
CUSIP No. 278878103
Exhibit 24
MILL ROAD URGES EEI SHAREHOLDERS TO VOTE FOR NEEDED CHANGE
GREENWICH, Conn. 4/10/17, Today, Mill Road Capital II, L.P. issued the following open letter to the Class A shareholders of Ecology and Environment, Inc. (EEI).
To Our Fellow Class A Shareholders of Ecology and Environment, Inc.:
We are pleased that both ISS and Glass Lewis, the leading independent proxy advisory firms relied upon by institutional shareholders as independent experts, have announced that change is warranted at EEI and have recommended that shareholders vote their proxy on the GREEN card. As ISS has said:
With their majority economic stake in the company and its continuing underperformance, Class A shareholders deserve to have their voices heard. Mill Road has presented a compelling case that additional change is needed at the board level It appears that for more positive change to occur, Mill Road would need both of its Class A nominees elected to the board.
In response to the Boards false claims, we ask you carefully review the perspective of ISS, a 3rd party proxy advisory firm. We urge you to vote your shares on the GREEN proxy card in order to bring a new perspective to the Board that Mill Road, the holder of the largest economic interest in EEI, and the independent proxy advisory firms believe is best for this company.
CLAIM: Mill Roads Nominees are Less Qualified and Lack Necessary Experience
ISS: Mill Roads Nominees Bring Valuable Experience and More Diverse Viewpoints
We believe that ISS is entirely clear on this point:
Justin Jacobs brings a strong, direct interest in improving shareholder value. Michael El-Hillow brings valuable experience as an executive and a board member at public companies. These nominees appear likely to also bring more diverse viewpoints, which may help reverse the companys revenue decline and stock underperformance. Votes FOR Mill Road nominees Jacobs and El-Hillow on the GREEN card are therefore warranted.
Justin Jacobs started his career at The Blackstone Group; he has worked as an operator and investment executive at a Blackstone portfolio company where he gained experience in strategic planning, operations, and investments; and he was involved with the founding of Mill Road Capital, where he has had significant experience with public micro-cap companies. Mr. Jacobs has a wealth of highly relevant experience that will be directly transferable to EEI.
Michael El-Hillow has been CFO of five public companies in his career, including at National Technical Systems where during his tenure, financial results improved significantly through organic growth,
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CUSIP No. 278878103
through successful acquisitions, and by increasing operational efficiency. His experience in acquisition strategy and operations management is exactly what EEI needs right now, and as a result El-Hillow would be an asset to the EEI board.
CLAIM: Boards Nominees are Qualified with Relevant Experience
ISS: EEIs Nominees are Less Compelling than Mill Roads Nominees
Once again, we believe the message from ISS is clear:
The boards Class A nominees appear less compelling. Mill Roads concerns about how independent Betrus truly is seem well founded, as Betrus former supervisors at EEI are now Class B directors. Management nominee Untracht has six years experience as a director of a publicly traded consulting company. However, his experience and relevance appear less strong than that of either Mill Road nominee.
Michael Betrus has no track record of success and has never served on another board. It appears to Mill Road that his primary qualification is that the Class B directors are comfortable with him since he had previously worked for the founders. We thinks this impairs his independence and ISS agrees. A former employee of the Class B Directors who owns fewer than 5,000 Class A Shares should not represent Class A shareholders.
Robert Untracht has been an accountant and professor before retiring. However, the company claims that he has corporate finance, strategic planning, and business development experience. From his given employment history, we believe that the Board vastly overstates and misrepresents his credentials. Class A shareholders, in exercising the only right afforded to them under EEIs governance, should choose as Class A directors those candidates with the necessary qualifications and aligned interests to help reverse the Companys continuing underperformance.
CLAIM: Mill Road Is Pursuing an Agenda to Sell EEI to Itself
ISS: Board Structure Prevents Sale of EEI Without Class B Votes
The Boards claim that Mill Road is solely fixated on selling the Company to itself on the cheap does not pass a basic test of common sense. ISS agrees:
The board has warned shareholders by saying that the Mill Road nominees will take EEI private at a low price. The dual class structure of the board would seem to prevent that, as the Mill Road nominees would need two Class B directors to join them. Further, when Jacobs and El-Hillow worked together at NTSC, a third party, not Mill Road, acquired NTSC from public shareholders, resulting in a highly profitable outcome for all shareholders.
Further, any potential sale of the company would require a shareholder vote and Class B shareholders control approximately 70% of the total votes. The Company actually classifies itself as a controlled company. No sale could be effected without the participation and support of the controlling Class B shareholders. Any implication that Mill Road could somehow steal the Company is patently false.
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CUSIP No. 278878103
CLAIM: EEI is Committed to Improving Governance
ISS: Board has Only Reacted to Mill Roads Actions
To the extent the Board has made changes in corporate governance, it has been in reaction to Mill Roads actions. ISS agrees, noting:
EEIs board has taken steps to improve governance. However, the timing indicates that the board reacted to Mill Roads actions. Both the Governing, Nominating and Compensation Committees and the search for new director nominees occurred only after Mill Road notified the company that it planned to nominate two Class A directors. This leads to the question of whether those positive steps would have occurred, absent Mill Roads presence.
Further, ISS questions whether the Board is keeping in mind its duty to ALL shareholders, not just the Class B shareholders:
In fact, far more concerning than the boards warnings regarding Mill Roads alleged intentions is the boards apparent disregard for input from unaffiliated shareholders. During an engagement call with ISS when asked about its criteria for new board candidates the board clearly stated it was looking for new directors who would agree with the boards current strategy. Such statements raise serious questions as to whether the board, without adequate representation from Class A shareholders, would appropriately evaluate all strategic options, rather than only those promulgated by the controlling group.
Mill Road believes that the Board has only focused on protecting the interests of the Class B shareholders at the expense of the shareholders as a whole. After years of being disenfranchised, it is time for the Class A shareholders to have a seat at the table.
CONCLUSION: Vote for Justin Jacobs and Michael El-Hillow
ISS and Glass Lewis, independent and unbiased third-party firms that represent ALL shareholders, agree with Mill Road that shareholders will benefit from a fresh perspective on the board. With the Annual General Meeting less than two weeks away, we urge all shareholders to support our nominees by voting on the GREEN proxy card.
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CUSIP No. 278878103
For any questions or issues voting your shares, please contact us below
65 Locust Avenue New Canaan, CT 06840 (203) 972-9300 Stockholders Call Toll-Free at: (877) 972-0090 E-mail: info@investor-com.com
|
YOUR VOTE IS IMPORTANT. VOTE FOR THE MILL ROAD CLASS A BOARD NOMINEES ON THE GREEN PROXY CARD TODAY.
To help you in your decision as to which slate of candidates to support, please read our definitive proxy statement and the presentation to shareholders Mill Road filed on March 24, 2017 regarding the election of directors for the Company. The definitive proxy statement, which contains information relating to the participants in the proxy solicitation in support of Mill Roads nominees, and the presentation to shareholders are both available at no charge on the Securities and Exchange Commissions website at www.sec.gov or by contacting our proxy solicitor, InvestorCom, Inc., by telephone toll-free at 1-877-972-0090. We hope you will find this information helpful as you consider which slate to support.
ON MARCH 21, 2017, MILL ROAD, TOGETHER WITH THE OTHER PARTICIPANTS FILED A DEFINITIVE PROXY STATEMENT ON SCHEDULE 14A AND A RELATED FORM OF PROXY WITH THE SECURITIES AND EXCHANGE COMMISSION, IN CONNECTION WITH MILL ROADS SOLICITATION OF PROXIES FOR THE 2017 ANNUAL MEETING OF SHAREHOLDERS OF ECOLOGY AND ENVIRONMENT, INC.
STOCKHOLDERS OF ECOLOGY AND ENVIRONMENT, INC. ARE ADVISED TO READ THE DEFINITIVE PROXY STATEMENT BECAUSE IT CONTAINS IMPORTANT INFORMATION, INCLUDING INFORMATION RELATING TO THE PARTICIPANTS IN THE SOLICITATION OF PROXIES IN FOR USE AT THE ANNUAL MEETING. THE DEFINITIVE PROXY STATEMENT AND GREEN PROXY CARD WILL BE AVAILABLE TO THE STOCKHOLDERS OF ECOLOGY AND ENVIRONMENT, INC. FROM THE PARTICIPANTS AT NO CHARGE, BY CONTACTING OUR PROXY SOLICITOR, INVESTORCOM, INC., BY PHONE TOLL-FREE AT 1-877-972-0090, AND ARE ALSO AVAILABLE AT NO CHARGE AT THE SECURITIES AND EXCHANGE COMMISSIONS WEBSITE AT WWW.SEC.GOV.
We thank you for your time and consideration of this matter and appreciate your vote.
Kind regards,
/s/ JUSTIN C. JACOBS |
Justin C. Jacobs |
Managing Director |
Mill Road Capital, L.P. |
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CUSIP No. 278878103
CERTAIN INFORMATION CONCERNING THE PARTICIPANTS
In addition to the Nominees (who are Justin C. Jacobs and Michael El-Hillow), the Participants in the proxy solicitation are Mill Road, Mill Road Capital II GP LLC, Mill Road Capital Management LLC, Thomas E. Lynch, and Scott P. Scharfman.
As of the record date and the date of this letter, Mill Road, the Participants and their associates beneficially owned an aggregate of 463,072 shares of Class A Common Stock, representing approximately 15.4% of the 3,000,956 outstanding shares of Class A Common Stock as reported in EEIs proxy statement dated March 7, 2017. The following table provides information about the beneficial ownership of Common Stock by Mill Road, Mill Road Capital GP II LLC, Mr. Lynch and Mr. Scharfman as of the date of this filing. The other Participants and the associates of both Mill Road and the Participants do not beneficially own any shares of Common Stock. Mill Road and the Participants do not beneficially own any securities of any parent or subsidiary of EEI.
Amount and Nature of Beneficial Ownership |
||||||||||||||||||
Title of Class |
Name and Address of Beneficial Owner |
Shares Held | Right to Acquire |
Total Number |
Percent of Class (3) |
|||||||||||||
Common Stock | Mill Road Capital II, L.P. (1) 382 Greenwich Avenue, Suite One, Greenwich, Connecticut 06830 |
463,072 | 0 | 463,072 | 15.43 | % | ||||||||||||
Common Stock | Mill Road Capital II GP LLC (2) 382 Greenwich Avenue, Suite One, Greenwich, Connecticut 06830 |
463,072 | 0 | 463,072 | 15.43 | % | ||||||||||||
Common Stock | Thomas E. Lynch (2) c/o Mill Road Capital II GP LLC 382 Greenwich Avenue, Suite One, Greenwich, Connecticut 06830 |
463,072 | 0 | 463,072 | 15.43 | % | ||||||||||||
Common Stock | Scott P. Scharfman (2) c/o Mill Road Capital II GP LLC 382 Greenwich Avenue, Suite One, Greenwich, Connecticut 06830 |
463,072 | 0 | 463,072 | 15.43 | % |
(1) | Mill Road Capital II, L.P. beneficially owns 463,072 shares of Common Stock, 1,000 of which are held of record. |
(2) | Mill Road Capital II GP LLC, and Mr. Lynch and Mr. Scharfman as the Management Committee Directors of Mill Road Capital GP II LLC, each has shared power to vote and dispose of the 463,072 shares of Common Stock beneficially owned by Mill Road Capital II, L.P. |
(3) | For purposes of calculating the percent of class, shares of outstanding Class A Common Stock excludes shares of Class B Common Stock that did not convert prior to the record date. |
Contact:
InvestorCom
John Glenn Grau, (203)972-9300
5
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