MWI Veterinary Supply, Inc.
Robbins Arroyo LLP: Acquisition of MWI Veterinary Supply, Inc. (MWIV) by AmerisourceBergen Corporation (ABC) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP are investigating the proposed acquisition of MWI Veterinary Supply, Inc. (NASDAQGS: MWIV) by AmerisourceBergen Corporation (NYSE: ABC). On January 12, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which AmerisourceBergen will acquire MWI Veterinary Supply. Under the terms of the agreement, MWI Veterinary Supply shareholders will receive $190.00 for each share MWI Veterinary Supply common stock.
Is the Proposed Acquisition Best for MWI Veterinary Supply and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at MWI Veterinary Supply is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $190.00 merger consideration represents a premium of only 14.8% based on MWI Veterinary Supply’s closing price on December 12, 2014. This premium is significantly below the average one-month premium of nearly 39.5% for comparable transactions within the past 5 years.
On November 6, 2014, MWI Veterinary Supply released its earnings results for its fourth quarter 2014, reporting strong quarterly earnings. Total revenues were $794.1 million for the quarter, 31.2% higher than revenues for the same period in the prior fiscal year. Net income was $17.4 million for the quarter, 22.3% higher than net income for the same period in the prior fiscal year. Also, MWI Veterinary Supply has beat consensus analyst estimates for adjusted EPS, adjusted net income, and sales in three of its last four quarters. In commenting on these results, MWI Veterinary Supply President and Chief Executive Officer Jim Cleary remarked, “MWI delivered another great quarter and fiscal year with strong financial and operational performance. The excellent execution by our team members continued to drive our business growth and positive results for our customers and vendor partners. This past fiscal year brought many new changes to our company, including the continued successful integration of IVESCO, and the recently acquired VetSpace business. We also are seeing positive trends in the animal health market contributing to organic growth.”
In light of these facts, Robbins Arroyo LLP is examining MWI Veterinary Supply board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
MWI Veterinary Supply shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
MWI Veterinary Supply shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.