Erickson-Evergreen Deal Draws Fire
Erickson Air-Crane’s acquisition of Evergreen Helicopters earlier this year is drawing fire from at least law firms representing the former’s shareholders. On March 20, Erickson announced it had agreed to acquire Evergreen for $250 million. The law firms, Brodsky & Smith, Rigrodsky & Long and Faruqi & Faruqi, allege the deal allowed Erickson’s majority shareholder, ZM Funds, to exchange approximately $120 million of Evergreen’s distressed debt for millions of more valuable combined company shares. Erickson’s valuation grew from $5.60 per share in August 2012 to $28.10 per share by May 2013. By mid-July it had declined to $19.94. The firms are investigating whether this financial transaction, as well as other elements of Erickson’s corporate governance by company officers and directors, constituted a breach of “fiduciary duties in connection with certain statements.” Erickson did not return calls seeking comment.