Schawk Sued by Investor Over $577 Million Matthews DealPhil Milford
Schawk Inc., which provides digital-imaging services and art production, was sued by a pension fund claiming a planned $577 million buyout by funeral-equipment maker Matthews International Inc. is unfair.
The transaction favors a series of Schawk family trusts, which own 62 percent of the shares and will hold more than 10 percent of Matthews’s stock, according to a complaint filed today in Delaware Chancery Court in Wilmington.
“There is no evidence that there was any shopping of the company prior to entry into the deal,” lawyers for Iron Workers Local No. 25 Pension Fund contend in court papers.
Matthews, based in Pittsburgh, said March 17 it would buy Des Plaines, Illinois-based Schawk, exchanging $11.80 in cash and 0.20582 Matthews share for each Schawk share.
Schawk fell 1.2 percent to $20.27 at 1:57 p.m. in New York.
The case is Iron Workers Local 25 Pension Fund v. The Clarence W. Schawk 1998 Trust, CA9510, Delaware Chancery Court (Wilmington).