Procter & Gamble announced Friday that it will add Nelson Peltz to its board of directors, effective March 1.

Peltz, an activist investor, took on P&G over the summer, seeking a board seat after the company rejected his request to be added to the board. The company said in a statement that it is adding the activist investor even though he did not win enough votes. Between Ernesto Zedillo and Peltz, P&G said the manager of Trian Partners received almost 50 percent of votes under the certified count.

P&G said it has had constructive conversations with Peltz about a board seat as well as "strategic choices to transform P&G and deliver better results."

The company said both sides agreed that P&G is "NOT predisposed to taking on excessive leverage, or substantially reducing R&D spending, or advocating for a break-up of the Company, or moving the Company out of Cincinnati."

Shares of P&G were 0.75 percent higher in after-hours trade.

—CNBC's Liz Moyer contributed to this report.