LAMY: How a Company Continues its Success Story
IMAP Germany advised LAMY on their successful succession to Mitsubishi Pencil leveraging synergies for both companies.
From Writing the First Love Letter to Finding the Perfect Partner
To understand the development of the German writing instrument manufacturer LAMY requires a little background knowledge. For nearly 100 years, the company has facilitated our most important writing experiences: that first love letter, treasured postcards to Grandparents, signing the first employment contract… Now the company has signed its own succession while maintaining its values.
Founded in 1930 by C. Josef Lamy, the real success story of LAMY began 36 years later, with the entry of second-generation Manfred Lamy and development of the LAMY 2000 fountain pen. A writing instrument with an unmistakable design that still characterizes the brand's products. Today, LAMY is represented in over 80 countries worldwide with more than 15,600 points of sale. The company produces exclusively at its headquarters in Heidelberg, where "Made in Germany" is not only a promise of quality, but also exemplifies the close ties and cohesion of the workforce.
From 1995 onwards, Manfred Lamy successively handed over his shares to the third generation and the company’s operations were gradually transferred to external management. LAMY continued to reinvent itself focusing on writing instruments as lifestyle accessories and thinking tools, paying special attention to innovation and quality. In 2023 the company expanded its digital portfolio in collaboration with leading technology companies and actively pursued a premium strategy with collaborations such as “"LAMY x Harry Potter" with Warner Bros. Discovery.
Time for Change
While the Lamy family remained committed to a pioneering spirit and their key values, they decided that a new owner needed to be found. Getting the right balance between tradition and change was a challenge and required the careful selection of an investor, who would complement LAMY and bring new know-how. LAMY chose IMAP as their M&A advisors, and the search for a suitable investor began.
Mitsubishi Pencil - the Perfect Match
Mitsubishi Pencil was founded in Japan in 1887 by Niruko Masaki. Although listed on the Tokyo Stock Exchange, it is still majority family-owned and currently run by sixth-generation, Shigehiko Suhara. As the leading manufacturer of stationery in Japan, its sales surpass EUR 450 million, and are 50 percent generated outside Japan. Top products include Uni-pencil, Uni-ball pen, and the increasingly popular POSCA markers. The company employs more than 2,700 people in 22 international sales offices and eleven production facilities.
Mitsubishi Pencil’s vision to become "the world's leading expressive innovation company" promotes human creativity and individuality. To make this a reality, the company was an early mover in establishing a dedicated e-commerce strategy which resulted in impressive organic growth. To complement this, they also pursued inorganic strategies, through the acquisition of companies, leveraging synergies for both sides.
Respecting Progress and Tradition
It is this complementarity which makes the deal between these two traditional family businesses a success. While the Japanese manufacturer focuses on the lower-priced segment, the German company’s premium positioning is a clear addition to their product portfolio. LAMY's high level of expertise in fountain pen production and the use of durable product components, as well as its design competence, complement Mitsubishi Pencil's high level of manufacturing and broad distribution network.
IMAP Germany - the Match Maker
The sellers instructed IMAP as M&A advisors to build a bridge between tradition and progress and to initiate the succession process. One of the family’s major concerns was job security for the workforce through commitment to the production site in Heidelberg and preservation of the LAMY brand. Finding the right partner for corporate succession requires dedicated preparation: How can the corporate strategy be continued? In what areas does the company need a strong partner to grow together?
LAMY is already strongly perceived as a premium brand in Asia, particularly in Japan. The IMAP team approached potential investors on an international level as part of a structured and competitive bidding process. The dedicated preparation with the management and advisors of the sellers, enabled stringent process management and time-efficient implementation of the transaction. This also ensured confidentiality throughout the process and increased transaction security.
A Win-Win
On a business level, both companies benefit from the takeover. Mitsubishi Pencil's strong global distribution network and expertise in online retailing will further increase LAMY's sales, while its capital strength will enable the German company to further develop innovation. Mitsubishi Pencil enters the premium market with LAMY’s know-how.
In addition, the two writing instrument specialists can jointly develop and launch new products in the field of digital writing, and thus ultimately expand their global market share.
Key Learnings for Your Own Succession Sale
It is important to remember that progress does mean abandoning traditions or values; instead, these can be combined with other ideas and perspectives to create something newer and better. Shareholders should avoid relegating progress to the operational level and be ready to embrace transformation at the top to ensure future growth and survival. This may take many forms from capital increases on a shareholder level, to minority and majority sales to strategic or financial investors and even takeovers of other companies. Whatever the choice, professional advice and good communication are essential.
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