SAN DIEGO and ANN ARBOR, Mich., Sept.
5, 2013 /PRNewswire/ -- Shareholder rights attorneys at
Robbins Arroyo LLP are investigating the acquisition of Kaydon
Corporation (NYSE: KDN) ("Kaydon") by AB SKF ("SKF"). On
September 5, 2013, the two companies
announced the signing of a definitive merger agreement under which
SKF will acquire Kaydon for $35.50 in
an all-cash tender offer. The transaction is expected to
close in the fourth quarter of 2013.
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Is the Merger Best for Kaydon and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Kaydon is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders in the
merger. As an initial matter, the $35.50 consideration represents a premium of only
22% based on the Kaydon's closing price on September 4, 2013. That premium is
substantially below the average one-day premium of 37.45% for
comparable transactions in the last five years.
On July 25, 2013, Kaydon issued a
press release announcing the company's operating results for its
second quarter 2013, reporting increases in orders and adjusted
gross margins. Specifically, Kaydon reported an increase in
orders to $123.2 million in the
second quarter, compared to $112.8
million for the same period 2012. The company also
reported an increase in adjusted gross margin to 38.6%, compared to
33.7% for the same period 2012. Further, Kaydon beat
analysts' predictions for earnings per share and net income in each
of the last four quarters. In announcing these results, James
'O'Leary, Kaydon's Chairman and Chief Executive Officer commented,
"The second quarter of 2013 was solid as we continue to
successfully manage the variables within our control.
Relative to the comparable quarter of 2012, we saw improved
margins, free cash flow and orders despite a still challenging
economic environment. In aggregate, bookings for our industrial
businesses were solid with trends consistent with this year's first
quarter."
Given these facts, Robbins Arroyo is examining Kaydon's board of
directors' decision to sell the company to SKF now rather than
allow shareholders to continue to participate in the company's
continued success and future growth prospects, and whether they are
seeking to benefit themselves.
Kaydon shareholders have the option to file a class action
lawsuit to secure the best possible price for shareholders and the
disclosure of material information so shareholders can vote on the
transaction in an informed manner. Kaydon shareholders
interested in information about their rights and potential remedies
can contact attorney Darnell R.
Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, or
via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. For more information, please go to
http://www.robbinsarroyo.com.
Press release link:
http://www.robbinsarroyo.com/shareholders-rights-blog/kaydon-corporation/
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP