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Taiyo Pacific Partners Considers Joining Brother Industries in Acquisition of Roland.
In a recent development that underscores the increasing activity in Japan’s corporate acquisition landscape, Taiyo Pacific Partners has expressed potential interest in participating in Brother Industries’ bid for a specialized Japanese printer manufacturer.Taiyo Pacific Partners, which holds a significant 19% stake in Roland DG, initially made an offer in February to acquire shares at 5,035 yen each, a 30% premium at the time. This move was soon followed by Brother Industries, a Nagoya-based company renowned for its home printers, with a higher bid of 5,200 yen per share.
The unfolding scenario presents a unique case of a U.S. investment fund engaging in a buyout battle for a niche market company in Japan. The situation has been further complicated by previous interactions between Brother Industries and Roland DG, which have led to unresolved issues from a co-managed project.
Brian Heywood, an executive officer at Taiyo Pacific Partners, highlighted the importance of Brother Industries demonstrating a clear and advantageous management strategy for Roland DG before any sale is considered. Heywood, who joined Roland DG’s board in 2020 following a period of underperformance, has witnessed a significant turnaround in the company’s fortunes, with share prices quintupling since that low point.
Brother Industries, on its part, has emphasized the potential synergies between the two companies, suggesting that a combined effort could lead to the creation of superior and innovative products in the industrial printer market.
The back-and-forth between the two companies reflects a broader trend in Japan, where reforms initiated by the Tokyo exchange have led to an increase in management buyouts and the unwinding of cross-shareholdings. With 28 such buyouts in 2023 alone, the highest in 17 years, the market is ripe for more contested deals.
As the tender offer period has been extended, the investment community watches closely as Taiyo Pacific Partners weighs its options. The outcome of this acquisition battle could signal a shift in the dynamics of corporate buyouts in Japan and set a precedent for future transactions.
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