Robbins Arroyo LLP: Acquisition of Sigma-Aldrich Corporation (SIAL) by Merck KGaA (MRK) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP are investigating the proposed acquisition of Sigma-Aldrich Corporation. (NASDAQ: SIAL) by Merck KGaA (XETR: MRK). On September 22, 2014, the companies announced that Sigma-Aldrich and Merck signed a definitive merger agreement pursuant to which Merck will acquire all outstanding shares of Sigma-Aldrich for $140.00 per share in cash.
Is the Proposed Acquisition Best for Sigma-Aldrich and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Sigma-Aldrich is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
On July 24, 2014, Sigma-Aldrich released its second quarter 2014 financial results, reporting record earnings. In particular, the company reported sales of $701 million compared to $681 million to the same period in 2013. Further, Sigma-Aldrich reported diluted earnings per share of $1.11 compared to $0.98 in the second quarter of 2013, an increase of 13%. Moreover, Sigma-Aldrich beat estimates for adjusted earnings per share and adjusted net income in every quarter for the past year.
In commenting on these results, Rakesh Sachdev, President and CEO of Sigma-Aldrich noted, “We achieved a record quarterly adjusted operating income this past quarter and significantly expanded our adjusted operating income margin from the same period last year…. Overall, we are making good progress on our long-term initiatives. In all three of our business units, we continue to launch new products and services, expand existing customer relationships and create new ones. We are encouraged by the improving trends in the Research markets and by the overall customer response to our initiatives, especially in the biopharma, diagnostics and testing markets. Operationally, we continue to optimize our core business while making new investments for future growth initiatives. We are in a strong financial position, and we will continue to evaluate and implement attractive opportunities to increase shareholder value.”
In light of these facts, Robbins Arroyo LLP is examining Sigma-Aldrich’s board of directors’ decision to merge the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Sigma-Aldrich 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.
Sigma-Aldrich 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.