A FTSE 250 printing technology company has fallen to a foreign buyer in a deal worth more than £1 billion.
Domino Printing Sciences, which makes printers for date coding and product marking with healthcare, food and beverage brands, has agreed to be bought out by Japanese giant Brother Industries.
The Cambridge-based company, employs 2,300 people with manufacturing sites in the UK, China, Germany, Sweden, India and the US. It has been listed on the London Stock Exchange since 1985, having been formed in 1978.
It is one of the biggest foreign takeover offers launched since revisions to the Takeover Code were introduced to provide additional safeguards for British manufacturing and research and development.
Under the terms of the deal, Domino shareholders would receive 915p in cash for each Domino share held, a 26.9 per cent premium on last night’s closing price. The deal values Domino at £1.03 billion.
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The takeover, which is subject to shareholder approval, sent shares in Domino jumping more than 30 per cent.
The board of Domino recommended the deal after being advised by Rothschild.
Domino shareholders, on the register at the close of business last Friday, will also receive the proposed final dividend for the year ended October 31 of 14.76p.
Peter Byrom, chairman of Domino, which posted revenues of £350.2 million for the financial year ended October 31, said the deal was necessary as the company was competing in evolving markets where the increasing adoption of digital printing technology was attracting a “new breed of competitor with significant 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.”
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Brother, founded in 1908, is a former sponsor of Manchester City football club and the maker of printers, sewing scanners and labellers.
The company said Domino was a “strong partner” because of “its established reputation, strategic direction and technological background”.
Toshikazu Koike, representative director and president of Brother, said:
“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.”
Brother vowed that Domino would operate as a standalone division within the combined business and that it did not “currently” intend to change the major locations of Domino’s operations.
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The Japanese firm will also keep the existing management team, brand and culture.
“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.”
Shares in Domino are currently up 30.89 per cent to 943.72p.