This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Acquisition Of Young Innovations, Inc. By Linden Capital Partners May Not Be In Young Innovations' Shareholders' Best Interests

Stocks in this article: YDNT

SAN DIEGO and EARTH CITY, Mo., Dec. 4, 2012 /PRNewswire/ -- Shareholder rights attorneys at Robbins Umeda LLP are 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.

(Logo: http://photos.prnewswire.com/prnh/20111014/ROBBINSUMEDALOGO)

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 interested in information about their rights and potential remedies can contact Darnell R. Donahue at (800) 350-6003, ddonahue@robbinsumeda.com, or via the shareholder information form on the firm's website.

Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.

Press release link:  http://www.robbinsumeda.com/shareholders-rights-blog/young-innovations-inc/

Attorney Advertising. Past results do not guarantee a similar outcome.  

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs