Domino falls to Japanese tech giant BrotherComments Off on Domino falls to Japanese tech giant Brother
Shares in Domino, whose printers are used for stamping barcodes and best-before dates on food, drinks and other products, hit an all-time high after its board recommended the 915p-a-share offer from its foreign suitor — a 27% premium to Tuesday’s closing price.
Domino will continue to operate as a standalone division. It is headquartered in Cambridge and employs 2,300 people in 16 countries.
The company warned last year that its 2015 results would be hit by rising costs.
Peter Byrom, Domino’s chairman, said today: “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.”
Brother is perhaps best known in the UK as the sponsor of Manchester City football club in the 1990s, before they were rich and successful. It makes equipment ranging from sewing machines and inkjet printers to online karaoke systems.
Toshikazu Koike, Brother’s president, said: “The addition of Domino fits with our strategic priority and enlarges our portfolio of industrial businesses.
“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.”
Domino shares soared 31% to 945p — well ahead of the bid price.