Acquisition of Young Innovations, Inc. by Linden Capital Partners May Not Be in Young Innovations’ 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 Young Innovations, Inc. (NASDAQ: YDNT) in connection with their efforts to sell the company to an affiliate of Linden Capital Partners.
On December 4, 2012, Young Innovations and Linden Capital announced they had entered into a definitive merger agreement under which Linden Capital will acquire Young Innovations through an all cash tender offer with a total value of $314 million. Young Innovations shareholders will receive $39.50 per share. The transaction is expected to close in the first quarter of 2013.
The Board of Directors’ Actions May Prevent Young Shareholders from Receiving the Maximum Value for Their Stock
Robbins Umeda LLP’s investigation focuses on whether the board of directors at Young Innovations is undertaking a fair process to obtain maximum value and adequately compensate its shareholders. The $39.50 per share offer price represents a premium of only 8.7% based on Young Innovations’ closing price on December 3, 2012, and is below the $40.44 per share price the Company’s stock traded at on October 1, 2012. Further, Young Innovations reported its third quarter 2012 financial results reflecting a 3.5% increase in sales for the quarter, and a 6.0% increase in income from operations. Young Innovations also reported diluted earnings per share for the fiscal third quarter 2012 of $0.54, compared to analyst estimates of $0.51. Moreover, Young Innovations has beat analyst earnings per share estimates in six of the past eight quarters. Given these financials, the firm is examining the board of directors’ decision to sell Young Innovations now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Young Innovations 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 vote on the transaction in an informed manner.
Young Innovations 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.