We are investigating the fairness of the $45.50 per share in cash pursuant to which Heritage-Crystal Clean, Inc. (Nasdaq: HCCI) (“HCCI”) has agreed to be sold to J.F. Lehman.
If you remain an HCCI shareholder and question the fairness of the price, you may contact our firm to discuss your legal rights at no charge by completing and submitting the form below.
Why is there an investigation?
On July 19, 2023, after the markets closed, HCCI announced that it had agreed to be sold to J.F. Lehman for $45.50 per share in cash, a small 8.5% premium to the closing price on July 19, 2023.
“We are investigating whether the HCCI Board of Directors acted in the best interests of HCCI shareholders in approving the sale,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether the price agreed upon is fair to HCCI shareholders, and whether all material information regarding the transaction has been fully disclosed.”
Notably, according to an analysis of Wall Street price targets for HCCI in the last 90 days published on Seeking Alpha, there is a high price target of $54.00 per share, and an average price target of $46.50 per share, which indicates that most Wall Street analysts think the deal price is too low.
Individual investors appear to agree the price is too low. For example, an investor on SeekingAlpha with the screenname NJ Trader characterized the small premium to the closing price on July 19, 2023, as “absurdly low,” and a “joke,” and questioned the HCCI Board’s motives for accepting such a small premium.