Ademi LLP is investigating Summit Materials (NYSE: SUM) for possible breaches of fiduciary duty and other violations of law in its transaction with Quikrete.
In the transaction, the stockholders of Summit Materials will receive only $52.50 per share in cash, for a total enterprise value of approximately $11.5 billion, including debt.
The transaction agreement unreasonably limits competing transactions for Summit Materials by imposing a significant penalty if Summit Materials accepts a competing bid. Summit Materials insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Summit Materials’ board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.