Things to Do Today: Offer $80 Million for Filofax
Day Runner Inc., an Irvine maker of organizers and daily planners, said Thursday it has made an unsolicited $80.5-million bid to buy British competitor Filofax Group.
The proposed acquisition of Filofax, which by far would be Day Runner’s largest acquisition to date, is part of the company’s strategy to expand internationally.
Filofax, which makes stationery products, advised shareholders to take no immediate action on the offer.
In documents filed Thursday with the Securities and Exchange commission, Day Runner said it has closely followed Filofax in recent years and observed how the company has “struggled to find a way forward.”
The company said it was “astounded” when Filofax had contacted a number of parties during the last year to discuss “strategic alliances, joint ventures and the sale of the group” but failed to talk with Day Runner.
Day Runner said it is in many ways “the logical international partner” for Filofax since the two companies have complementary geographical coverage and distribution channels.
“We are offering a serious price for an under-performing company that lacks direction,” said Day Runner Chairman Mark Vidovich, who was in London on Thursday to announce the offer. “Filofax needs Day Runner’s skill to develop the brand further and take the business forward.”
Filofax officials could not be reached for comment.
Day Runner said its cash offer of about $3.36 per share for Filofax is nearly 43% above the stock’s Wednesday closing price of about $2.34 a share. Day Runner stock was unchanged in Nasdaq trading Thursday, closing at $19.13.
Day Runner said the combination would benefit shareholders of both companies. Day Runner’s sales are stronger in the United States and Canada, whereas Filofax has a heftier presence in Europe, said Judy Tucker, vice president of business development for Day Runner.
Filofax also sells largely in department stores and established retail outlets, whereas Day Runner uses emerging retailers and mass-market distribution channels, such as Kmart and office products superstores, she said.
Should Filofax shareholders approve the sale, Day Runner “would not anticipate any major layoffs,” Tucker said.
“This is about incremental sales, not about cutting costs,” she said. “This is not about going in and slashing and burning.”
