Acquisition of AMCOL International Corporation by Imerys S.A. May Not Be in
Shareholders' Best Interests
SAN DIEGO and HOFFMAN ESTATES, Ill., Feb. 12, 2014
SAN DIEGO andHOFFMAN ESTATES, Ill., Feb. 12, 2014 /PRNewswire/ --Shareholder
rights attorneys at Robbins Arroyo LLP are investigating the proposed
acquisition of AMCOL International Corporation (NYSE: ACO) by Imerys S.A.
(Euronext Paris: NK). On February 12, 2014, the two companies announced the
signing of a definitive agreement pursuant to which Imerys will commence a
tender offer to acquire all outstanding shares of AMCOL common stock for
$41.00 per share in cash.
Is the Proposed Merger Best for AMCOL and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors
at AMCOL is undertaking a fair process to obtain maximum value and adequately
compensate AMCOL shareholders.
As an initial matter, the $41.00 merger consideration represents a premium to
shareholders of just 11.7% based on AMCOL's closing price on February 11,
2014. This one day premium is significantly below the average one day premium
of over 27% for comparable transactions in the last five years. Further,
prior to the announcement of the agreement, an analyst at Sidoti & Company,
LLC set a target price of $43.00.
In addition, on January 24, 2014, AMCOL released its financial results for the
fourth quarter of 2013, reporting record fourth quarter sales and solid
increases in net sales and operating profit. Specifically, AMCOL reported
that its net sales increased 9.7%, or $22.9 million, in the fourth quarter as
compared to the same quarter 2012. AMCOL also reported a 12.2% increase in
operating profit for the fourth quarter, or $2.2 million, as compared to the
fourth quarter 2012.
In commenting on the these results and potential future growth, AMCOL
President and CEO, Ryan McKendrick, remarked, "Our performance materials
segment experienced nice growth on both the top and bottom lines with
operating profit increasing 17.6%. The outlook for our flagship metalcasting
products looks positive as our customers serving the auto industry anticipate
steady demand in our core US and China markets. Demand continues to be strong
for our pet products as we increase volumes to existing customers as well as
gain new packaged product customers. Within basic minerals, all product lines
experienced sales growth, especially due to demand for non-foundry chromite
and bulk bentonite product."
Given these facts, Robbins Arroyo LLP is examining the AMCOL board of
directors' decision to sell the company to Imerys now rather than allow
shareholders to continue to participate in the company's continued success and
future growth prospects.
AMCOL shareholders have the option to file a class action lawsuit to ensure
the board of directors obtains the best possible price for shareholders and
the disclosure of material information. AMCOL shareholders interested in
information about their rights and potential remedies can contact attorney
Darnell R. Donahue at (800) 350-6003, email@example.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 law 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.
Attorney Advertising.Past results do not guarantee a similar outcome.
Darnell R. Donahue
Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
SOURCE Robbins Arroyo LLP
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