Founder Graeme Minto backs Brother Industries in take over of Domino Printing Sciences
The founder of Domino Printing Sciences yesterday gave his blessing to the takeover bid by Japan’s Brother Industries, saying he believed the “very good ethos” at Domino would be shared by the Japanese firm.
Graeme Minto, who founded the firm in 1978, spoke of his pleasure at being able to look back over the past 30 years and see it valued so high.
Minto retired from the company in 1988 and said Domino’s listing on the London Stock Exchange in 1985 was a highlight as it was welcomed by the City.
The latest deal was also well-received as shares in Domino leapt over 30 per cent yesterday after the takeover was announcement.
As part of the deal, shareholders were offered 915p per share in cash, representing a 27 per cent premium on Tuesday’s closing price and valuing the company at £1bn.
Speculation rose about the possibility of a second offer, however, after shares at started to climb over 950p.
The likely source of any counter bid appears to be from one of Domino’s main US rival’s utilising the current strength of the dollar and valuing the company higher on the back of R&D expenditure, said analysts.
Shares in the company closed up 30.51 per cent at 941p.
BEHIND THE DEAL: DAVID WORMSLEY CITI
1 He is one of the top M&A bankers in the City, having been linked with enormous deals including Ferrovial’s £10bn purchase of BAA.
2 Wormsley joined the Museum of London board of governors in 2013. The museum may soon move from the Barbican to Smithfield Market.
3 Wormsley was Guy Hands’ financial adviser and used to take shooting holidays with him and his family before Hands tried to claim Wormsley tricked him into buying EMI.
Also advising…
Ravi Gupta of Rothschild is acting as financial adviser to Domino. James Murgatroyd is the PR adviser to Brother. Jefferies is the corporate broker for Domino.
OVERSEAS TAKEOVERS
■ Acquirer: Ball (US) Target: Rexam
■ Acquirer: Alcoa (US) Target: Firth Rixson
■ Acquirer: Qualcomm (US) Target: CSR
■ Acquirer: Cooper Cos (US) Target: Sauflon Pharma
■ Acquirer: Bain Capital (US) Target: Forticrete
■ Acquirer: OTPP (Canada) Target: Bridon
■ Acquirer: Brambles (Australia) Target: Ferguson Group
THE MAN BEHIND DOMINO
The founder of Domino is the Cambridge-educated Graeme Minto, who managed to secure his first big contract with bingo card printer Cowells Arrow, which still uses Domino products to this day. Minto’s entrepreneurial spirit was recognised by Cambridge University’s centre of entrepreneurial learning, where he helped to compile some of the materials used for its advanced diploma in entrepreneurship. He spent 26 years as a director and chaired 10 different companies, while acting as a serving magistrate in his spare time. Minto lives in Cambridge and spends much of his time supporting local charities. He also said he had “great respect” for the managers of Domino.