NEW YORK, July 29, 2015 /PRNewswire/ -- The fairness of the
proposed acquisition of Magnetek Inc. ("MAG" or the "Company") by
Columbus Mckinon Corporation ("Columbus") is the subject of an
investigation by WeissLaw LLP, a national class action, shareholder
rights law firm. The investigation focuses on possible
breaches of fiduciary duty and other violations of law by the Board
of Directors of MAG for agreeing to sell the Company to
Columbus. On July 27, 2015, the Company announced it had
reached a definitive agreement for Columbus to acquire MAG in a
transaction valued at approximately $188.9
million. Under the terms of the agreement, MAG
shareholders will receive $50.00 for
each MAG share they own.
WeissLaw is investigating whether MAG's Board acted to maximize
shareholder value prior to entering into the agreement. The
Company recently announced positive financial results for the first
quarter of 2015, reporting net sales of $26.6 million, a 10% increase
year-over-year. It also reported gross margin improved to
35.3% of sales, which represents an increase of 150 basis points
over the previous year. Additionally, it reported earnings
per share from continuing operations of $0.67 as compared with $0.35 in the previous year, representing a 91%
increase year-over-year.
Given these facts, WeissLaw is investigating whether MAG's Board
acted in the best interests of MAG's public shareholders by
actively shopping the Company to maximize shareholder value prior
to entering into the agreement with Columbus. If you own MAG
shares and would like more information about your rights or our
investigation, or if you have information to share with us, please
contact Joshua Rubin by telephone at
(888) 593-4771 or by email at
stockinfo@weisslawllp.com.
WeissLaw LLP has litigated hundreds of stockholder class and
derivative actions for violations of corporate and fiduciary
duties. We have recovered over a billion dollars for
defrauded clients and obtained important corporate governance
relief in many of these cases. If you have information or
would like legal advice concerning possible corporate wrongdoing
(including insider trading, waste of corporate assets, accounting
fraud, or materially misleading information), consumer fraud
(including false advertising, defective products, or other
deceptive business practices), or anti-trust violations, please
email us at stockinfo@weisslawllp.com or fill out the form
on our website,
http://www.weisslawllp.com/contact/report_fraud/.
Attorney Advertising. Past results do not guarantee a
similar outcome.
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SOURCE WeissLaw LLP