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Acquisition of Kaydon Corporation by AB SKF May Not Be in the Best Interests of Kaydon Corporation Shareholders



 Acquisition of Kaydon Corporation by AB SKF May Not Be in the Best Interests
                      of Kaydon Corporation Shareholders

PR Newswire

SAN DIEGO and ANN ARBOR, Mich., Sept. 5, 2013

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.

(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

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

Website: http://www.robbinsarroyo.com
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