NEW YORK (TheStreet) -- Schawk (SGK) hit a one-year high of $20.34 on Monday after Matthews International (MATW) announced it would acquire the company for an implied price of $20 a share based on Matthews' closing price on Friday, March 14, 2014.
Matthews announced that Schawk's stockholders would receive $11.80 a share and 0.20582 shares of Matthews' common stock for each share of Schawk they hold, which places the value of the deal at approximately $577 million.
Shortly after the announcement, though, multiple law firms announced they had begun investigations into the deal to determine whether Schawk's board of directors failed to adequately shop the company and maximize value for its shareholders.
The stock closed up 35.37% to $19.94, up $5.21 from its previous close of $14.73. It amassed a volume of 946,045, nearly 44 times its average of 21,593. The stock holds a one-year low of $9.38 and hit a low of $19.62 for one day.
TheStreet Ratings team rates SCHAWK INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCHAWK INC (SGK) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow."