Companies
Brother buys Domino printing
Japan is Brother Industries Ltd will buy British barcode-printer maker domino printing Sciences Plc for about 1.03 billion in cash (1.55billion) to expand its industrial printing range.
Domino, which is fighting bigger rivals with enhanced financial firepower, said yesterday that its shareholders would get 915 pence share, a 27% premium to the stock's Tuesday close.
Domino shares rose to a record 956 pence in early trading yesterday, well above the recommended offer price, hinting at the possibility of a higher bid.
" There's also potential for a rival bid to come in, probably from a US player, given how neatly Domino would fit into a US portfolio given that's where it is weaker," Pee; Hunt analyst henry carver told Reuters.
some analysts named Danaher Corp and Dover Corp as possible bidders. The companies could not immediately be reached for comment.
Domino's products had been leading the digital label printing market in certain areas, and rival bid wouldn't be surprising, said UBS analyst Robbie Capp in a note.
" it has become increasingly clear that maintaining its position in the enlarged markets will require Domino to find the Peter Byrom said.
Brother Industries to finance the deal through debt or exiting cash. It has a bridge facility with Citibank and Citibank Japan under which 1.073 billion would be available for financing the acquisition.
Domino shareholders will also get the 14.76 pence-per-share final dividend announced in December. They can opt to receive loan issued by Brother instead of the cash offer.
Brother, which makes equiment ranging from sewing machines printers to online karaoke systems, gets about 70% of its sales from its printing and solutions unit.
Domino, which makes printers to stamp barcodes and expiry dates on food items, beverage cans and medicines, will operate as a standalone division post the deal, according to the companies.
Domino warned in June that 2015 results would be hurt by pricing pressure in Asia and other developing markets and higher research and development expenses.
Sky News reported on Tuesday that Domino had agreed to a deal with a Japanese company, adding that the company had held talks with some US-based competitors in recent months. REUTERS