A2 Milk Company share price on watch after naming its new CEO

The A2 Milk Company Ltd (ASX:A2M) share price will be on watch today after the infant formula company named its new CEO…

The A2 Milk Company Ltd (ASX: A2M) share price will be on watch today after the infant formula and fresh milk company finally found its next permanent managing director and chief executive officer.

What did a2 Milk Company announce?

In December last year, former CEO Jayne Hrdlicka abruptly left the fast-growing company after she "agreed to step down" from her role with immediate effect. Ms Hrdlicka was replaced with its former CEO, Geoffrey Babidge, on an interim basis while the company searched globally for a permanent replacement.

This morning a2 Milk Company revealed that it has finally found its next leader, with the appointment of David Bortolussi. He will succeed interim CEO Geoffrey Babidge early in the 2021 calendar year.

Who is David Bortolussi?

Mr Bortolussi was most recently the Group President – International Innerwear, at HanesBrands, where he was responsible for and had extensive exposure to Asian sourcing markets, particularly in China. This includes various brand distribution partnerships in the region.

Prior to this, Mr Bortolussi spent five years at Foster's Group, where he held the role of Chief Strategy Officer and was responsible for corporate strategy, M&A, business development, and performance improvement. In this role, he led the operational separation and demerger of the domestic beer and global wine businesses, generating significant shareholder value.

Given the hefty cash balance that a2 Milk Company is sitting on at the moment, the new CEO's experience in M&A could come in very handy in the near future.

The company's chair, David Hearn, commented: "Following an extensive global search, the Board is delighted to have secured David for this role. David has demonstrated significant skill in guiding businesses through periods of significant growth whilst also effectively managing the changes that expansion frequently requires."

"The a2 Milk Company is going through a period of continued strong growth in dynamic markets and David's skillset and comprehensive strategic and operational experience will serve the company well. I am looking forward to working with David as we navigate these challenges together with the board and management team," he added.

The new CEO appears up for the challenge. Mr Bortolussi said: "I have always admired The a2 Milk Company's achievements and I am looking forward to joining the board and management team to continue the development of such an extraordinary business. The team at a2 has created a very distinctive consumer proposition, amazing brand and strong culture with so much potential. I'm thrilled to have the opportunity to lead such a talented and experienced team, and to be part of the next phase of growth."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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