TOKYO | Japan – May 2024 – Brother Industries Ltd. (Brother) today clarified its position regarding its previously announced tender offer for Roland DG Corporation (Roland DG). While Brother will not revise its current offer of ¥5,200 per share, the company leaves the possibility open for initiating the tender offer in the future, subject to Roland DG exhibiting a more collaborative stance and fulfilling all conditions precedent to the Tender Offer.
History of Engagement and Tender Offer
Brother has actively pursued collaboration with Roland DG since September 1, 2023, culminating in a Letter of Intent expressing Brother’s belief it would be the ideal partner to enhance both companies’ value. Building on this foundation, Brother officially launched its tender offer on March 13, 2024.
Brother’s decision comes after a months-long bidding war Roland DG. Brother initially offered ¥5,200 per share for Roland DG, a move seen as an attempt to gain control over Roland DG’s inkjet technology and expand its own printer offerings. However, Roland DG resisted the offer, pursuing a management buyout (MBO) with the help of private equity firm Taiyo Pacific.
Brother accused Roland DG of manipulating the bidding process and failing to act in the best interests of its shareholders. The company claims that Roland DG’s concerns about “dis-synergies” – potential conflicts arising from a merger – lacked merit. Brother also pointed out its successful collaborations with past acquisitions, suggesting a smooth integration was possible.
The Future of Brother’s Wide-Format Printers
The fate of Brother’s W-series latex printers, co-developed with Roland DG, remains unclear. The public claims between the companies raise questions about their ability to continue working together.
Brother’s Commitment to Growth
Despite the failed acquisition, Brother remains committed to growth in the inkjet printing space. The company will continue its focus on “leaping forward in the industrial field and transformation of the printing field” as outlined in its Brother Group Vision.
www.brother.com
Editors Note: Given the information Brother has provided about not increasing its acquisition price, the Management Buyout (MBO) offer appears to have a much better chance of succeeding.
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