SAN DIEGO--(BUSINESS WIRE)--Shareholder rights firm Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Interline Brands, Inc. (NYSE: IBI) in connection with their efforts to sell the company to affiliates of GS Capital Partners LP and P2 Capital Partners, LLC. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003, email@example.com, or via the shareholder information form on the firm's website.
On May 29, 2012, Interline Brands announced that it had entered into a definitive merger agreement to be acquired by GS Capital Partners and P2 Capital Partners. According to the terms of the deal, GS Capital Partners and P2 Capital Partners will acquire all outstanding shares of the company through an all-cash transaction. Pursuant to the agreement, Interline Brands shareholders will receive $25.50 in cash for each share of the company they own. The transaction is expected to close during the third quarter of 2012.
Robbins Umeda LLP's investigation focuses on whether Interline Brands' Board of Directors is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company's recent positive financial results. On May 8, 2012, Interline Brands reported strong operating results for the first quarter of fiscal year 2012 that beat analyst expectations. The company reported revenue of $313.6 million, a 5.4% increase over the $297.4 million in revenue reported during the same quarter of the previous year and above analyst estimates of only $311.67 million. Additionally, Interline Brands reported diluted EPS of $0.23 for the first quarter of 2012, a 15% increase over diluted EPS of $0.20 reported during the first quarter of fiscal year 2011. In the words of Michael J. Grebe, the Chairman and Chief Executive Officer of Interline Brands, "We are encouraged by our start to the year, and remain focused on our strategic imperatives that will drive profitable growth in 2012 and beyond."
Given the company's impressive financial results, Robbins Umeda LLP is examining the board's decision to sell Interline Brands now at $25.50 per share rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Robbins Umeda LLP attorneys highlight that Interline Brands shareholders have the option to file a class action lawsuit against the company to secure the best possible price for the company's shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner.
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/interline-brands-inc/
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