France“s Verrerie Cristallerie d“Arques, the world“s largest glass and crystal manufacturer, agreed to buy Mikasa Inc., a US dinnerware and crystal maker, for about US$ 280 million, the companies s…
France“s Verrerie Cristallerie d“Arques, the world“s largest glass and crystal manufacturer, agreed to buy Mikasa Inc., a US dinnerware and crystal maker, for about US$ 280 million, the companies said. The French firm, a subsidiary of J.G. Durand Industries SA, offered US$ 16.50 a share for Mikasa, based in Secaucus, New Jersey. Shares of Mikasa rose 64.1%, or US$ 6-1/4 to US$ 16 on the news, making it the largest percentage gainer on the New York Stock Exchange. The stock“s 52-week high was US$ 12-1/8 on October 11, 1999. Top Mikasa executives, all of whom hold 54.9% of stock, will continue to hold a “substantial investment” in the company. Mikasa will become privately held after completion of the deal. “This merger allows acceleration in our growth in the world“s largest market for tabletop products and the addition of very attractive brands, which are highly valued by American consumers, and for which the development potential is global,” said Philippe Durand, president of Paris-based J.G. Durand. Mikasa Chairman Alfred Blake, President and Chief Executive Raymond Dingman, Executive Vice President Anthony Santarelli and founder George Aratani have agreed to vote their 54.9% stake in favour of the agreement and against any alternative transactions. The executives will remain in their current roles at Mikasa. Dingman said Verrerie Cristallerie d“Arques, which generated 1999 sales topping Euros 1 billion, is known for its technical and manufacturing prowess and offers diverse distribution channels, while Mikasa“s strengths are in marketing and design. Verrerie Cristallerie d“Arques has a presence in 160 nations and 80 percent of its sales are from outside France. Mikasa, which generated US$ 420 million in 1999 sales, operates 167 retail stores. Mikasa said it has received an opinion from CIBC World Markets that the US$ 16.50 a share value is fair to the stockholders other than the investors that will retain a substantial investment. A special committee of nonexecutive directors unanimously recommended the agreement.