Brother to acquire Domino after directors recommend 915p share offer

The offer equates to a value just over one billion GBP (1.5 billion USD), and represents a 42.6 percent premium to the average six-month price and a 27 percent premium on the share price at close on March 10.

Domino’s board owns 0.4 percent of the company’s shares and has agreed the price offered by Brother. Its directors intend to recommend unanimously that other shareholders vote in favor of the offer.

Domino chairman Peter Byrom said: ‘Domino is a unique company with a strong track record, which has established itself at the forefront of the coding and marking industry through consistent innovation and delivering solutions that meet its customers' needs.

‘However, the markets in which Domino competes are evolving, with the increasing adoption of digital printing technology, and attracting a new breed of competitor with significantly greater scale and financial firepower than Domino. It has become increasingly clear that maintaining its position in the enlarged markets will require Domino to find the appropriate partner that brings complementary skills and strengths in digital printing.

‘Against this backdrop, the board of Domino believes that the combination with Brother is both compelling and timely. The enlarged group will be able to invest in the future to consolidate and capitalise on Domino's current significant position and to serve better our customers, whilst creating exciting career opportunities for employees.’

Brother is a global company with a diversified business portfolio consisting of laser and inkjet printers, multi-functional printers, sewing machines, machine tools, industrial parts, and network and contents businesses.

It has a history of expanding into new products and geographies, and sees industrial businesses as being of strategic importance and aims to develop the industrial component of its product portfolio.

As such, Brother believes that industrial printing offers an attractive opportunity and has identified Domino as a strong partner.

Toshikazu Koike, representative director and president of Brother, added: ‘The addition of Domino fits with our strategic priority and enlarges our portfolio of industrial businesses. The combination of Brother and Domino will represent a unique value proposition in industrial printing with significant growth potential.

‘Throughout the discussions with Domino, I really sensed that the two companies share a philosophy of serving customers, a technology-oriented corporate culture and a long-term commitment to people, all of which will form a strong foundation for the combined business to make this acquisition genuinely successful.

‘The combined global platform will help us accelerate both companies' growth strategy.

‘We have been strongly impressed by the achievement of the incumbent management team and employees of Domino, and we are looking forward to working with them.’