Brother Industries proposes Mutoh acquisition

Brother Industries recently proposed to acquire Mutoh from its shareholders for an estimated ¥35 billion (roughly $220 million USD as of Feb. 5’s exchange rate). Brother published their intent to acquire in a commencement of tender offer notice published on Feb. 4. Through the proposed acquisition, Brother stated that it intends to make Mutoh a wholly-owned subsidiary.

According to MarketScreener, the acquisition is subject to the approval of the merger agreement by Mutoh’s board of directors, which formed a special committee for the transaction. The transaction is expected to be completed by March 23, 2026.

In addition, Brother released supplementary materials that gave more information about the offer. In this release, the company stated, “As we explored opportunities for discontinuous growth in the industrial printing business, we determined that the tender offer would contribute to expanding the product lineup and strengthening the business foundations of printing and automation.”

Brother continued, “Through the tender offer, we aim not only to secure a product lineup and market position in printing and automation area where we seek growth, but also to enhance corporate value by strengthening the business foundations of both companies … Utilizing [the] two companies’ resources can create synergy — strengthen competitiveness of products/services, expand sales by cross-selling, and reduce cost.”

Mizuho Securities Co. acted as financial advisor for Brother Industries. Nomura Securities Co. acted as financial advisor for Mutoh Holdings. Anderson Mori & Tomotsune acted as legal advisor for Brother Industries, Nishimura & Asahi acted as legal advisor for Mutoh Holdings Co.