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The digital imaging business was facing a fundamental disruption, one felt across the industry. As smartphone cameras improved and their usage grew nearly universal, demand for personal cameras fell steeply.
According to the Camera and Imaging Products Association of Japan, Japanese manufacturers shipped 15 million digital cameras in 2019—just 12% of the number shipped in 2010.
“If we were to keep the current operation or business model … we would hit a dead end at some point,” said its then-Chief Financial Officer.
The company took steps to improve the cost structure and efficiency of the business, but it continued to underperform. In early 2021, the company finalized the sale of its digital imaging business to an Asian PE firm.
Under a microscope
In mid-2021, the company announced it had decided to sell its scientific instruments division, making microscopes, videoscopes and testing equipment for a range of life sciences and industrial applications.
The move was part of cementing its position as a major player in med-tech. Management set an ambitious goal: deliver a fully transactable division with independent operations, all in 10 months or less.
The company announced it completed the separation of the business into a wholly owned subsidiary within the short time frame targeted—and, within a few short months, transferred the business to a large well-known PE fund.
6x
EBITDA multiple over expectation for the scientific instruments business
____________
6 months
time to a transactable stand-alone business
A partnership is born
AlixPartners set out to make sure this global industrial client could deliver both of its stable, functioning businesses to their new homes. Amid tight timelines and intense pressure to safeguard margins, the team worked closely with management at all levels to carve out the businesses, disentangle functions and quickly reach a transactable state.
By developing a blueprint to physically and economically split sites and applying it regionally in Asia, Europe and the U.S., the team was able to meet the distinct requirements of each market. As an example, AlixPartners was able to lean in to take on critical interim roles, including regional CFO and Treasurer, to de-risk the uncoupling of the businesses.
Embracing their “turnaround DNA”, the team sprang into action, driving the blueprint with precision and speed, and, together with leadership, actively managing down stranded costs.
Once the path to separation was clear, the team pivoted to support the sale process—to smooth the glide path to a closing and improve the outcome. The team built a value creation plan that helped buyers see a path to incremental value in areas like pricing, delivery performance, supply chain and target operating model.
Clear results
Away from the distraction of the two non-core divisions, the company has once again been delivering on its promise of focused growth in its core power alley of med-tech.
