NEW YORK, July 29, 2015 /PRNewswire/ -- The fairness of the proposed acquisition of Magnetek Inc. ("MAG" or the "Company") by Columbus Mckinon Corporation ("Columbus") is the subject of an investigation by WeissLaw LLP, a national class action, shareholder rights law firm. The investigation focuses on possible breaches of fiduciary duty and other violations of law by the Board of Directors of MAG for agreeing to sell the Company to Columbus. On July 27, 2015, the Company announced it had reached a definitive agreement for Columbus to acquire MAG in a transaction valued at approximately $188.9 million. Under the terms of the agreement, MAG shareholders will receive $50.00 for each MAG share they own.
WeissLaw is investigating whether MAG's Board acted to maximize shareholder value prior to entering into the agreement. The Company recently announced positive financial results for the first quarter of 2015, reporting net sales of $26.6 million, a 10% increase year-over-year. It also reported gross margin improved to 35.3% of sales, which represents an increase of 150 basis points over the previous year. Additionally, it reported earnings per share from continuing operations of $0.67 as compared with $0.35 in the previous year, representing a 91% increase year-over-year.
Given these facts, WeissLaw is investigating whether MAG's Board acted in the best interests of MAG's public shareholders by actively shopping the Company to maximize shareholder value prior to entering into the agreement with Columbus. If you own MAG shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at firstname.lastname@example.org.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at email@example.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
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SOURCE WeissLaw LLP