SAN DIEGO and VERNON,
Calif., May 13, 2013 /PRNewswire/ --
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the acquisition of True Religion Apparel, Inc.
(NASDAQ: TRLG) by TowerBrook Capital Partners L.P., a New York and London-based investment management firm.
On May 10, 2013, True Religion
announced that it had entered into a definitive merger agreement
whereby TowerBrook will acquire all of the outstanding shares of
True Religion common stock for $32.00
per share in cash.
(Logo:
http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)
The Board of Directors' Actions May Prevent True Religion
Shareholders from Receiving Maximum Value for Their
Stock
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at True Religion is undertaking a fair process to
obtain maximum value and adequately compensate its shareholders in
the merger.
The $32.00 merger consideration
represents a premium of only 8.7% based on True Religion's closing
price on May 9, 2013, the last
trading day prior to the merger announcement. The 8.7%
premium is substantially below the median premium of 35.62% for
comparable transactions over the past three years. Further,
the $32.00 offer price is
considerably lower than the target price of $38.00 set by an analyst at B. Riley &
Company on February 7, 2013.
Is the Acquisition Best for True Religion and Its
Shareholders?
On May 10, 2013, True Religion
released its fiscal year 2013 first quarter financial results
reflecting an increase in total net sales. Specifically, the
company's total net sales increased 13.1% to $120.8 million, compared to the same period in
2012. True Religion has exceeded analyst sales expectations
the past three consecutive quarters. Further, the company
reported a gross profit increase 6.9% to $73.7 million, driven in large part by overall
sales growth.
Given these facts, the firm is examining the board of directors'
decision to sell True Religion now rather than allow shareholders
to continue to participate in the company's continued success and
future growth prospects.
True Religion 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. True Religion
shareholders interested in information about their rights and
potential remedies can contact 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/true-religion-apparel-inc/
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