SAN DIEGO and STEWARTVILLE, Minn., Sept. 5, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Rochester Medical Corporation (NASDAQ: ROCM) ("Rochester Medical") by C. R. Bard, Inc. (NYSE: BCR) ("Bard"). On September 4, 2013, Rochester Medical announced a definitive merger agreement under which Bard will acquire Rochester Medical for $20 in cash for each share of stock. The transaction is expected to close in the fourth quarter of 2013.
Is the Merger Best for Rochester Medical and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Rochester Medical is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger. On July 30, 2013, Rochester Medical issues a press release announcing the company's operating results for its third quarter ended June 30, 2013, reporting strong increases in net income and sales. Specifically, Rochester Medical reported a 127% increase in net income to $1,130,000 as compared to $496,000 for the same period 2012. The company also reported an increase in sales of approximately 10%, resulting from a 12% increase in Rochester Medical Direct Sales and a 5% increase in Private Label Sales. In announcing these results, Rochester Medical's Chief Executive Officer and President Anthony J. Conway commented, "We reported another quarter of strong growth, led by the United States and the United Kingdom, where Direct Sales, excluding Foley Catheters, grew 30% and 26% respectively. We are pleased with our performance this year and remain on track to achieve our Foley adjusted 2013 guidance for revenue of approximately $67 million and after-tax profit of approximately $7 million."Additionally, the officers and directors, who collectively own 11.2% of Rochester Medical's outstanding shares, have agreed to vote their shares in favor of the merger and also agreed to certain restrictions on the disposition of such shares.
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