UPDATE: Fujifilm Agrees To Buy US SonoSite For $995 Million, Latest Acquisition In Japan Buying Spree
15 December 2011 - 10:52PM
Dow Jones News
Fujifilm Holdings Corp. (4901.TO) said Thursday it has reached
an agreement to buy U.S. medical equipment maker SonoSite Inc.
(SONO) for $995 million, in the latest instance of Japanese
companies hunting down overseas peers to make up for their dim
prospects at home.
The Tokyo-based maker of cameras, copiers and medical equipment
said it will acquire all the outstanding common shares of SonoSite
through what will be an all-cash tender offer of $54 per share. The
purchase price represents a premium of 50% over SonoSite's average
closing stock price over the three months through Wednesday.
The deal is yet another indication of the strong appetite for
investment overseas among firms in Japan that has positioned the
nation as the world's third largest cross-border acquirer this
year.
Fujifilm said the tender offer will kick off within 20 working
days and will remain open for 21 U.S. business days.
The company said SonoSite, a world leader in point-of-care
ultrasound products based in Bothell, Wash., will continue its
operations in the U.S. as a wholly owned subsidiary. The U.S. firm
specializes in the development of ultra portable devices that are
used in more than 20 clinical specialties. Fujifilm said the latest
deal is friendly, adding that SonoSite's board of directors will
recommend its shareholders accept the tender offer.
"We are delighted to be joining forces with SonoSite. The
transaction significantly accelerates Fujifilm's full-scale entry
into the fast-growing hand-carried ultrasound equipment market and
will position ultrasonography as a strategic pillar for the future
growth of our medical system business," said Fujifilm chief
executive Shigetaka Komori in a press release.
Faced with saturated demand at home, Japanese companies are
striving to obtain a bigger slice of market share overseas. The
yen's strength is also providing Japanese companies with spending
ammunition to press ahead with the buying spree.
According to data provider Dealogic, the value of acquisitions
abroad by Japanese companies so far this year has come to a record
$79.7 billion, led by Takeda Pharmaceutical's (4502.TO) $14 billion
purchase of Swiss competitor, Nycomed.
The string of deals has positioned Japan as the third-biggest
cross-border acquirer behind the U.S. and the U.K. this year.
Since the financial crisis of 2008, Japanese companies have
amassed large stockpiles of cash and refrained from capital
spending. With Japanese banks willing to finance deals,
corporations are in a good position to make acquisitions.
Fujifilm has diversified from making film into manufacturing
industrial materials and equipment ranging from liquid crystal
display film to medical X-ray systems.
-By Hiroyuki Kachi, Dow Jones Newswires; 813-6269-2789;
Hiroyuki.Kachi@dowjones.com
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