Snow Peak, an outdoor equipment manufacturer located in Sanjo City, Niigata Prefecture, is aiming to go private by conducting a management buyout (MBO) in which its managers purchase the company's publicly traded stock.
"Snow Peak" has been expanding its business to capture the increased demand for camping due to the spread of the new coronavirus, but as demand has subsided, the final profit for the year up to December last year was 99.9% compared to the previous year. It was a small amount of 1 million yen.
Under these circumstances, the company decided to carry out a management buyout (MBO), in which managers purchase the shares of their listed companies, with the aim of going private.
In collaboration with Bain Capital, an American investment fund, we will conduct a tender offer for the shares from the 21st to April this year, and if the tender offer is successful, the company is expected to be delisted from the TSE prime market.
Regarding the reason, the company stated, ``As the business environment becomes increasingly difficult, we would like to proceed with overseas expansion to the United States and China and new businesses.On the other hand, making necessary investments would lead to a deterioration of our financial situation in the short term. We believe that it will be difficult to grow if we manage our business with consideration for shareholders," and our policy is to transform our business structure by increasing the degree of management freedom.
According to the company, the current management team will, in principle, continue to run the company, and employees will continue to be employed.
In Japan, the number of companies implementing MBO has been increasing since last year, and it has been pointed out that the reason behind this is that the Tokyo Stock Exchange is asking companies to engage in management that is conscious of corporate value and stock prices.