Glory (6457), based in the western Japanese prefecture of Hyogo, will offer to buy the closely held company from Carlyle Group for 80 billion yen ($1 billion), according to a statement filed to the Tokyo Stock Exchange.
“By acquiring Talaris we aim to become the world’s top brand” for money-handling machines, Hirokazu Onoe, Glory’s president, said today at a news conference in Osaka. “We are targeting overseas markets that are expected to grow.”
Glory, whose customers include Bank of America Corp. and Mitsubishi UFJ Financial Group Inc., seeks to boost revenue more than 20 percent to 170 billion yen in the three years ending March 2015, by increasing business in foreign countries, Onoe said in an interview in August. The company faces a declining market in Japan, where a government report yesterday showed the economy shrank an annualized 2.3 percent in the fourth quarter, more than analysts forecast, as exports fell.
Carlyle, one of the largest private equity fund managers, bought Talaris in 2008 from British bank note maker De La Rue Plc for 360 million pounds ($566 million), Carlyle (CG) said in a statement today. Earnings have increased 40 percent since, helped by expansion into new markets such as Brazil, the Washington-based firm said.
Glory’s decision to buy Talaris comes after what Onoe called “several unsolicited” proposals last year from brokerages for him to buy the Hampshire, U.K.-based company.
Glory, which has a market value of about 118 billion yen, this month reported nine-month net income fell 18 percent to 3.65 billion yen. It reiterated its forecast for a 4.4 percent increase in profit to 6.5 billion yen in the year ending March. Sales are forecast to rise 4.3 percent.
The Talaris purchase is expected to be completed in the year starting April 1, pending approval by regulators, Onoe said today. Glory plans to pay 650 million pounds in cash, including debt owed by Talaris, he said.
Bank of America Corp.’s Merrill Lynch unit advised Carlyle, while KPMG advised Glory.
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