Keith (M) Posted August 2, 2017 Share #1 Posted August 2, 2017 Advertisement (gone after registration) A post on Leica Rumours. Blackstone in talks to sell stake in Leica, Zeiss is “potentially interested” 1 Quote Link to post Share on other sites More sharing options...
Advertisement Posted August 2, 2017 Posted August 2, 2017 Hi Keith (M), Take a look here Blackstone in talks to sell stake in Leica. I'm sure you'll find what you were looking for!
earleygallery Posted August 2, 2017 Share #2 Posted August 2, 2017 https://www.reuters.com/article/us-blackstone-leica-camera-sale-idUSKBN1AI22V?il=0 Interesting comment from Dr Kaufmann regarding his 100 year plan. I don't think he'll be able to see it through himself though! Quote Link to post Share on other sites More sharing options...
hoppyman Posted August 3, 2017 Share #3 Posted August 3, 2017 More than a bit astonished that Zeiss is named as a potential buyer and with no source for that startling claim in their rumour apparent Quote Link to post Share on other sites More sharing options...
jaapv Posted August 3, 2017 Share #4 Posted August 3, 2017 Well, they do say "sources" . I should think Panasonic would be a more likely company, despite Zeiss being Leica's nextdoor neighbour. I wonder whether the majority shareholder has any say in the matter. Quote Link to post Share on other sites More sharing options...
jaapv Posted August 3, 2017 Share #5 Posted August 3, 2017 I wouldn't know; companies like Blackstone usually sell after a few years. It does make sense though, that Leica stopped the free M9 sensor replacement, in this situation an open-end and not quantifiable commitment is undesirable. Quote Link to post Share on other sites More sharing options...
willeica Posted August 3, 2017 Share #6 Posted August 3, 2017 Companies like Blackstone habitually 'flip' investments. They always need to maintain a 'balance' in their overall portfolio. We are at a crossroads in the camera/imaging business and making future market predictions will not be easy. The point of interest to people on this forum will be whether the purchaser, if one can be found, will be another investment fund or an industry (imaging or electronics) player. Reading the '100 year statement, it seems that the Kaufmann family are unlikely to release their majority holding in the company any time soon. William 2 Quote Link to post Share on other sites More sharing options...
LocalHero1953 Posted August 3, 2017 Share #7 Posted August 3, 2017 Advertisement (gone after registration) I can think of two reasons for selling: Leica is a financial disaster zone and they want to cut their losses, or it's a successful turnaround after the dark days, is now making money and has a credible forward development scenario. (Anything in between would be work in progress and probably not for sale.) My money would be on the latter. (Disappointingly, neither Blackstone nor potential buyers have asked my advice on the matter) 2 Quote Link to post Share on other sites More sharing options...
jaapv Posted August 3, 2017 Share #8 Posted August 3, 2017 I'm not sure about either. I think Leica is simply a going concern and Blackstone is following their normal business model: Buy or participate, invest to enhance value, clean up and sell at a profit. 1 Quote Link to post Share on other sites More sharing options...
wlaidlaw Posted August 3, 2017 Share #9 Posted August 3, 2017 The natural course would be for Blackstone to float their share of the company but given that 55% would remain privately owned, I am not sure that German flotation laws permit that (anyone know?). With an operating profit of around $2.5 billion for their last financial year, Panasonic could easily afford to buy 45% of Leica if Mr. Kaufmann approved. Wilson Quote Link to post Share on other sites More sharing options...
almoore Posted August 3, 2017 Share #10 Posted August 3, 2017 With an operating profit of around $2.5 billion for their last financial year, Panasonic could easily afford to buy 45% of Leica if Mr. Kaufmann approved... They could, but, given the company's restructuring and change of direction, it seems unlikely that they would. 1 Quote Link to post Share on other sites More sharing options...
jaapv Posted August 3, 2017 Share #11 Posted August 3, 2017 Maybe but they were talking of moving the camera division out of the main company operations. Combining it with Leica could well produce quite a bit of synergy. Quote Link to post Share on other sites More sharing options...
wlaidlaw Posted August 3, 2017 Share #12 Posted August 3, 2017 Maybe but they were talking of moving the camera division out of the main company operations. Combining it with Leica could well produce quite a bit of synergy. .....and Kudos. Leica is still a name of significance in Japan. Quote Link to post Share on other sites More sharing options...
Guest Posted August 3, 2017 Share #13 Posted August 3, 2017 https://m.dpreview.com/news/5710804150/report-45-of-leica-is-up-for-sale-and-zeiss-is-interested Quote Link to post Share on other sites More sharing options...
almoore Posted August 3, 2017 Share #14 Posted August 3, 2017 Combining it with Leica could well produce quite a bit of synergy.I think Leica would be enormously strengthened by the input of Panasonic, but it would be very surprising if they stepped in. Quote Link to post Share on other sites More sharing options...
UliWer Posted August 3, 2017 Share #15 Posted August 3, 2017 The natural course would be for Blackstone to float their share of the company but given that 55% would remain privately owned, I am not sure that German flotation laws permit that (anyone know?). With an operating profit of around $2.5 billion for their last financial year, Panasonic could easily afford to buy 45% of Leica if Mr. Kaufmann approved. Wilson Blackstone doesn't hold a direct share of the Leica Camera AG. All shares of the AG (stock corporation) are owned by L.IS.A Holding GmbH. Kaufmann (i.e. ACM Projektentwicklung) holds 55% of LISA, Blackstone 45%. I do not know, though I am rather sure that the share deal between ACM and Blackstone has some clauses to regulate how Blackstone can sell ist share. 3 Quote Link to post Share on other sites More sharing options...
ski542002 Posted August 3, 2017 Share #16 Posted August 3, 2017 Would love to see Apple swing some kind of deal with Leica. Yeah, I'm aware they're not a "camera" company. At least the marketing philosophy of both institutions is one of producing a quality product and they have one of the highest R&D budgets in the universe. The customer base of both are also somewhat accepting of the products' higher price point. I'd fear having any Chinese company buying heavily into Leica. 1 Quote Link to post Share on other sites More sharing options...
LocalHero1953 Posted August 3, 2017 Share #17 Posted August 3, 2017 Would love to see Apple swing some kind of deal with Leica. Yeah, I'm aware they're not a "camera" company. At least the marketing philosophy of both institutions is one of producing a quality product and they have one of the highest R&D budgets in the universe. The customer base of both are also somewhat accepting of the products' higher price point. I'd fear having any Chinese company buying heavily into Leica. Hmm. If Apple took over, you'd pretty quickly find the M mount abandoned for a new Apple-designed connector. And you wouldn't be able to buy adapters. 2 Quote Link to post Share on other sites More sharing options...
UliWer Posted August 3, 2017 Share #18 Posted August 3, 2017 There are only 45% to be sold. Anyone who would buy them had someone with 55% besides him, who is so desinterested in Leica that he took over the position of CEO several times in the past and owns unimportant assets as the whole Leitz -Park alone. This does not make the share deal too interesting for anyone, who wanted to "do anything with" Leica. The Reuters news which came out with the story that Blackstone was going to sell, clearly ruled out Zeiss as an potential buyer, since it would not get a majority share. It's only interesting for people who want to put some money in to get it out again with a bargain -like Blackstone. Quote Link to post Share on other sites More sharing options...
willeica Posted August 3, 2017 Share #19 Posted August 3, 2017 There are only 45% to be sold. Anyone who would buy them had someone with 55% besides him, who is so desinterested in Leica that he took over the position of CEO several times in the past and owns unimportant assets as the whole Leitz -Park alone. This does not make the share deal too interesting for anyone, who wanted to "do anything with" Leica. The Reuters news which came out with the story that Blackstone was going to sell, clearly ruled out Zeiss as an potential buyer, since it would not get a majority share. It's only interesting for people who want to put some money in to get it out again with a bargain -like Blackstone. That would seem to point to a financial investor like Blackstone (eg CDH) unless some trade (cameras/imaging) entity sees synergies. As I understand it, Blackstone is just out of the 'tie in' clause period in the shareholders' agreement in the last year or so and they are free to sell their share holding. The use of a holding company for both sets of shareholding is quite a usual feature in such ownership structures. The real issue is how the market views the camera/imaging market at this point in time. Leica has been bucking the general trend, but the future is by no means clear. Leica is also not the only company in such a situation. Nikon has been subject to rumours about a possible part sale to foreign entities and about the Japanese Government asking other Japanese manufacturers to take a position in Nikon to avoid the company falling into foreign hands, such as one of their near neighbours. We are indeed living in interesting times. William 1 Quote Link to post Share on other sites More sharing options...
jaapv Posted August 3, 2017 Share #20 Posted August 3, 2017 There are only 45% to be sold. Anyone who would buy them had someone with 55% besides him, who is so desinterested in Leica that he took over the position of CEO several times in the past and owns unimportant assets as the whole Leitz -Park alone. This does not make the share deal too interesting for anyone, who wanted to "do anything with" Leica. The Reuters news which came out with the story that Blackstone was going to sell, clearly ruled out Zeiss as an potential buyer, since it would not get a majority share. It's only interesting for people who want to put some money in to get it out again with a bargain -like Blackstone. I think the article underestimates the strength of german provincialism. Leica and Zeiss share a region where a large proportion of the workforce is employed in the optical industry. Families and marriages are often 50-50 Zeiss-Leica, they drink in the same Biergarten, company secrets are shared on the marital pillow. Who can tell the strength of the grassroots connection? 2 Quote Link to post Share on other sites More sharing options...
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