Acquisition of Caribou Coffee Company, Inc. by Joh. A. Benckiser Group May Not Be in Caribou’s Shareholders’ Best Interests
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Caribou Coffee Company, Inc. (NASDAQ: CBOU) in connection with their efforts to sell the company to an affiliate of Joh. A. Benckiser Group. Caribou Coffee is the second-largest company-owned coffeehouse operator in the United States.
On December 17, 2012, Caribou Coffee and the Benckiser Group announced they had entered into a definitive merger agreement under which the Benckiser Group will acquire Caribou Coffee through an all cash tender offer that valued the company at $324.8 million. Caribou Coffee shareholders will receive $16 per share. The transaction is expected to close in the first half of 2013.
The Board of Directors’ Actions May Prevent Caribou Coffee Shareholders from Receiving the Maximum Value for Their Stock
Robbins Umeda LLP’s investigation focuses on whether the board of directors at Caribou Coffee is undertaking a fair process to obtain maximum value and adequately compensate its shareholders. The $16 per share offer is substantially below the $18.84 per share price the Company’s stock traded as recently as April 2, 2012, and is well below recent target prices set by multiple analysts. Specifically, an analyst at Craig-Hallum has maintained a target price of $19 per share since August 7, 2012, while an analyst at Longbow Research set a $17 per share price on December 12, 2012. Further, on November 8, 2012, Caribou Coffee announced its third quarter 2012 financial results, reporting earnings per share estimates that exceeded analysts’ for the eighth consecutive quarter. The company also reported coffeehouse sales of $61.0 million, a 4% increase compared to the third quarter of 2011 and that franchise sales for the third quarter 2012 increased to $4.3 million, or 45%, compared to the third quarter of 2011. Given these facts, the firm is examining whether the board of directors’ decision to sell Caribou Coffee for $16 per share is fair to shareholders and it maximizes the value for their shares.
Caribou Coffee shareholders have the option to file a class action lawsuit against the company to secure the best possible price for shareholders and the disclosure of material information so shareholders can make an informed decision on whether to tender their shares in the tender offer.
Caribou Coffee shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Darnell R. Donahue at (800) 350-6003.