Varsity Brands Settles Suits Over Buyout
Varsity Brands Inc., which makes uniforms for cheerleading, dance and sports teams, settled shareholder lawsuits challenging a planned $130.9-million sale to managers and investor Leonard Green & Partners.
In April, Memphis, Tenn.-based Varsity said stockholders would receive $6.57 a share, a 40% premium at the time. Suits were filed in state courts in Delaware and Tennessee to stop the buyout. A shareholders’ meeting to vote on the transaction is scheduled for Monday in New York.
As part of the settlement, Varsity agreed to reduce the $5.25-million fee to Los Angeles-based Green & Partners, payable if the deal falls through, and to supply additional information about the buyout process to stockholders, Varsity said.
Varsity shares were unchanged at $6.49 on the American Stock Exchange.
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