Schawk, Inc. (NYSE:SGK) Investor Investigation Concerning Potential Wrongdoing in Proposed Buyout

If you purchased shares of Schawk, Inc. (NYSE:SGK) and currently hold any of those NYSE:SGK shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Schawk
Affected Securities: 
NYSE: SGK

March 18, 2014 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Schawk, Inc. (NYSE:SGK) shares, was announced concerning whether the takeover of Schawk. by Matthews International Corporation for a value of approximately $20.00 per share is unfair to NYSE:SGK stockholders.

The investigation by a law firm concerns whether certain officers and directors of Schawk, Inc. breached their fiduciary duties owed to NYSE:SGK investors in connection with the proposed acquisition.

On March 17, 2014, Schawk, Inc. announced that it has entered into a merger agreement with Matthews International Corporation (NASDAQ: MATW) pursuant to which Matthews will acquire Schawk, Inc. The consideration to be received by NYSE:SGK stockholders reflects a purchase price of $20.00 per share of Schawk, Inc. (NYSE:SGK) common stock and an enterprise value of approximately $577 million, in each case based upon the closing price of Matthews' common stock on March 14, 2014. Under the terms of the transaction, SGK stockholders will receive a combination of $11.80 in cash and 0.20582 shares of Matthews common stock for each outstanding share of SGK owned. Based on Matthews' closing price of $39.84 per share on March 14, 2014, the stock portion of the consideration is valued at $8.20 per share.

However, given that after the takeover news NYSE:SGK shares on March 17, 2014 jumped to $20.26 per share in the open market, the investigation concerns whether the offer is unfair to (NYSE:SGK stockholders. In addition, given that certain members of the Schawk family, including Clarence W. Schawk, SGK's founder and Chairman of the Board, and David A. Schawk, SGK's Chief Executive Officer, already entered into agreements pursuant to which such family members agreed to vote their shares, and shares held in family trusts for the benefit of certain Schawk family members, in favor of the approval of the merger agreement, the investigation concerns whether the Schawk Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

Schawk, Inc reported that its annual Total Revenue rose from $455.29 million in 2011 o $460.73 million in 2012. Shares of Schawk, Inc. (NYSE:SGK) grew from $9.68 per share in April 2013 to as high as $16.84 per share in October 2013.

Shares of Schawk, Inc. (NYSE:SGK) closed on March 17, 2014, at $19.94.