The big BH Mega Deal Zone (Click here to see all deals) will end tonight!

The 30% discount on the newly announced Nik Collection 3 (Click here to see all details) will end soon:

The German magazin Photografix analyzed the activity of JIP. In most cased JIP resold the companies that they bought. A few examples:

• SII Micro Parts Co., Ltd. (2003 – 2007)
• Rakuten KC Co., Ltd. (2004 – 2005)
• Laserfornt Technologies, Inc. (2004 – 2007)
• ITX Corp. (2012 – 2015)
• BIGLOBE, Inc. (2014 – 2016)
• VAIO Ltd. (2014 – ?)
• KM Aluminium Co., Ltd. (2015 – ?)

The interesting news is that JIP also had bought Olympus Smartphone division “ITX” in 2012. They sold it three years after. Photografix believes there is a chance that JIP will handle the Imaging Division like the Vaio division: Make it slim, outsource production to lower the costs, and maybe Olympus will still have a small remaining stake in this business.

But there could be also this darker scenario:

Doug Janis summed up the (possible?) dark truth about JIP, the company that is going to buy the Olympus camera business. Warning: I don’t know what’s going to happen and I have no elements to say if what Doug is writing here is correct. But my feeling is that in those days it’s a better bet to believe in “rumors” than in company statements :(

Doug writes:

JIP is worth US$150 million.

YoY Olympus Imaging (its camera wing) is losing US$156 million.

JIP specializes in taking under-performing assets and parsing them out. They are not a turnaround company. In Japan, it’s extremely expensive to downsize employees and pensions and salaries. So companies like JIP exist to take assets and sell them apart from those obligations.

In the last 5 years JIP has sold off assets of over 14 companies. Not one has it ever restructured or continued development. It doesn’t have the capital. JIP exists solely to manage brands for the benefit of shared agreements with shareholders. That’s why VAIO is 10% owned by Sony and why JIP outsources all design and manufacture to Chinese parts bin suppliers for components. JIP has no R&D, no internal development, no engineers, nothing. They are accountants.

They are a vulture fund of privately owned equity partners designed to get around Japanese pension, retention, and servicing laws.

This is very bad news for the Olympus brand and its invested customers. The Japanese news is all over this as well because JIP is notorious for Chinese outsourcing at a time when it’s official domestic policy to onshore key industries. This is another example of Olympus having a tin ear.

In Japan apparently most external sales staff (non-Japanese) have been let go. This started months ago. Most of the software, design, and optical engineers have left or are moving to medical imaging. Overseas assembly plants are being quietly shopped for real estate value alone. The glazing kilns are shutting down for consumer Imaging. The company is preparing to only sell from inventory. New products are technically on hold until Olympus figures out how much to pay JIP to take these losses off their hands. Olympus Visionaries in some countries have already been told they must stick to NDAs and there is no marketing budget nor equipment available.

That’s right. The news out of Japan is that this is NOT a sale, but a divestment at loss. Olympus will have to pay JIP to take Imaging, basically giving them the consumer patent portfolio in exchange. The reason for the press release is Olympus has to divulge now that it will be paying cash for JIP to take the assets. That warns shareholders. This was NOT about the loyal consumer. Anyone who thinks this is a deep pockets investor seeking a new product line, or this is an “under new management” improvement needs to know exactly what JIP is as a company. They exist to help Olympus get rid of their consumer Imaging portfolio entirely.

This is likely the end of Olympus and Zuiko. The Japanese inside information is much more revealing than the web-based stories in English media. You have to go to the accounting and engineering boards in Japan to hear the dirt.

I now have a small rationale hope and a crazy hope:

• The small rational hope is that Panasonic and the other MFT consortium members will still be fully committed to MFT.
• The crazy hope is that Olympus at the end will decide to NOT sell the imaging business to JIP.

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Thanks Doug for the nice writing and Mistral for sharing

Olympus UK released the following statement:

Today the Olympus Imaging Business has signed a memorandum of understanding (MOU) with Japan Industrial Partners, Inc. (JIP). According to the MOU, both companies are entering into further discussions about the potential transfer of Olympus’ long-standing imaging business to JIP by the end of 2020.

JIP is a strong investment fund with a track record of success and has maximised the growth of many brands. JIP will use the innovative technologies and solid brand position of Olympus within the market, while also improving the profit structure of Olympus’s imaging business.

We understand you may have many questions, all of which we will work to answer in the upcoming weeks. We ask for your patience: we believe this is the right step to preserve our brand’s legacy, the products, and the value of our technology. Olympus sees this potential transfer as an opportunity to enable our imaging business to grow and delight both longtime and new photography enthusiasts. Olympus and JIP will continue discussions, and we are committed to providing full transparency about our intentions as the plans solidify.

We are grateful to all our customers for their loyalty and support for our products, and their passion for photography. During the ongoing discussions, Olympus Imaging will operate with business as usual: we will continue to work on innovative initiatives for our customers and we will launch new products as planned.

For the full statement, please tap through here: www.olympus-global.com/news/2020/nr01695.html

43rumors note: Sorry to say that I do NOT see opportunity to grow. My only hope now is in Panasonic. Lets get this nice GH6 :)

This is a news that changes everything. Olympus plans to sell the camera business to JIP. Olympus might retain a very small stake in the new company that will be created by JIP. But I doubt JIP will continue the Micro Four Thirds business as usual. As reported by our reader Mistral:

Here is the press text:

News Release
Company: Olympus Corporation Yasuo Takeuchi, Director, Representative Executive Officer, President and CEO (Code: 7733, First Section, Tokyo Stock Exchange)
Company: Japan Industrial Partners, Inc. Hidemi Moue, CEO

Signing of Memorandum of Understanding for Divestiture of Imaging Business

Olympus Corporation (“Olympus”) and Japan Industrial Partners, Inc. (“JIP”) hereby announce that, today, the parties signed a memorandum of understanding to carveout Olympus’s Imaging business to a new company (“NewCo”) and subsequently transfer its shares to a fund managed, operated or otherwise handled by JIP (the “Transaction”).
After the due diligence and further discussions and negotiations, the parties are aiming to sign a legally- binding definitive agreement for the Transaction (the “Definitive Agreement”) by September 30, 2020. We will promptly make further announcement if any matters relating to the Transaction that needs further announcement occur.

1. Background and Purpose of the Transaction
Olympus’s Imaging business began with the manufacture and sale of a camera using the photographic
lens Zuiko in 1936. Through innovative technology and unique product development capabilities, Olympus has developed and launched various products, aiming to contribute to make people’s lives more fulfilling. Those products include: Olympus Pen, the innovative half-sized camera; Zuiko Pearlcorder, the world’s first micro-cassette tape recorder; and Olympus OM-D series, the mirrorless interchangeable lens camera.
Olympus has implemented measures to cope with the extremely severe digital camera market, due to, amongst others, rapid market shrink caused by the evolution of smartphones; Olympus has improved the cost structure by restructuring the manufacturing bases and focusing on high-value-added interchangeable lenses, aiming to rectify the earning structure to those that may continue generating profit even as sales dwindles. Despite all such efforts, Olympus’s Imaging business recorded operating losses for 3 consecutive fiscal years up to the term ended in March 2020.
Under such circumstances, Olympus considers that, by carving-out the Imaging business and by operating the business with JIP, the Imaging business’s corporate structure may become more compact, efficient and agile and it is the most appropriate way to realize its self-sustainable and continuous growth and to bring values to the users of our products as well as our employees working in the Imaging business. Olympus therefore has decided to sign the memorandum of understanding for the Transaction.

JIP has strong track records in supporting strategic carve-outs that realize growth potential and encourage autonomous growth. By adding support from JIP, the NewCo, as the successor of reputable brands such as “OM-D” and “ZUIKO,” will utilize the innovative technology and unique product development capabilities which have been developed within Olympus, and will realize continuous growth of the business by bringing better products and services to the users and customers and by making itself a productive and rewarding work place for its employees.

Imaging Business after the Transaction
NewCo will succeed and maintain the research and development functions and manufacturing functions globally as reformed under the contemplated structuring reforms to continue to offer high-quality, highly reliable products; and also continue to provide supports to the imaging solution products that have been distributed by Olympus.
Outline of the Transaction
The specifics of the Transaction shall be decided in the Definitive Agreement after careful examination and consultation between the parties. The parties currently consider the outline of the Transaction shall be as follows.
The parties will proceed with the actions and procedures for Transactions in full compliance with applicable laws including consultation obligations and other requirements under local employment laws.

Structuring Reform
Prior to the closing of the Transaction, Olympus plans to implement structuring reforms to the Imaging
business aiming to change the business structure of Imaging business to be more profitable and sustainable. We are currently investigating costs and other impacts of the structuring reform. If any future event which requires disclosure arises, Olympus will announce it promptly.
(1) Structure
(2) Signing of

Definitive Agreement
(3) Closing
: (i) Olympus’s Imaging business will be transferred to the NewCo by way of company split or otherwise, and then, (ii) shares in the NewCo will be transferred to a new company to be established by JIP.
: Scheduled to be signed by September 30, 2020
: Olympus and JIP strive to close the Transaction by December 31, 2020.
Contact:
Olympus Corporation, Investor Relations: TEL.03-3340-2111 Japan Industrial Partners, Inc.: TEL.03-6266-5781

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43rumors note: Micro Four Thirds will continue, JIP and Panasonic will still keep making MFT products. But having Olympus out of the picture is a major blow anyway. This is a very sad day for the entire industry

Preorders:
G100 at BHphoto. Amazon. Adorama. FocusCamera.

Press coverage:
Hands-on at Explora. review by CameraLabs. Initial review at Dpreview. Image samples at Dpreview. Lab shot test at Imaging Resource.

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