Buyout Of Schawk – Law Firm Seeks Higher Price For Shareholders

Tripp Levy PLLC is investigating claims on behalf of investors of Schawk Inc. (“Schawk” or the “Company”) (NYSE: SGK), concerning the proposed acquisition of Schawk by Matthews International Corporation (“Matthews”) (NASDAQ: MATW). Schawk shareholders seeking more information about this acquisition are advised to contact us toll free at 1-877-772-3975 or contact us via our website.

The investigation concerns whether the Schawk directors are breaching their fiduciary duties by failing to adequately pursue alternatives to the acquisition and maximize shareholder value. Under the terms of the definitive merger agreement, Schawk stockholders will receive $11.80 in cash and 0.20582 shares of Matthews’ common stock for each share of Schawk common stock they own, valuing the transaction at approximately $577 million. 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, the Price to Revenue multiple is below the averages of comparable transactions. Additionally, certain members of the Schawk family, who collectively own approximately 61% of the common stock of Schawk, have agreed to vote in favor of the proposed merger. Thus, non-affiliated shareholders effectively have no say in the outcome of the shareholder vote.