ME Group Intl. - Completion of acquisition of photobooths in Japan
02/10/2023 11:31
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RNS Number : 3789O ME Group International PLC 02 October 2023
2 October 2023
ME Group International plc
(the "Group" or the "Company")
Acquisition of photobooths in Japan
ME Group Japan K.K. positioned as the market leader in Japan
Further to the announcement made on 3 July 2023, ME Group International plc
(LON: MEGP), the instant-service vending equipment group, is pleased to
announce that on 30 September 2023 the Company's Japanese subsidiary, ME Group
Japan K.K., acquired the automated-photobooth business owned and operated by
two subsidiaries of FUJIFILM Corporation (formerly FUJIFILM Co., Ltd) in Japan
for a total consideration of approximately £5.3 million (Japanese Yen 966
million), with conditions precedent to the acquisition having been fulfilled,
with Japanese Yen 906 million payable at closing. The acquisition has been
funded by a new local loan facility at a fixed rate of 1.2%.
This acquisition will position ME Group Japan K.K. as the market leader in the
country and adds a further 3,548 photobooths to the Group's operations in
Japan. The acquired units are traditional photobooths located in high-footfall
locations, such as travel hubs and shopping centres throughout Japan,
delivering official photo ID pictures for consumers. The acquired photobooths
will be fully integrated into the Group's operations in Japan and will benefit
from operational synergies under the Group's ownership.
Demand for Photo ID in Japan remains robust, driven by the Japanese
government's social security and taxation photo ID card scheme as well as a
continued recovery of the market following the lockdown. Consequently, this
acquisition is expected to be earnings-enhancing in the first full year of
ownership. As a result of the acquisition and subsequent synergies, the
Group's Asia Pacific revenue is expected to increase by 20 to 30 percent and
to add approximately £2.2 million in profit before tax in the year ending 31
October 2024. This brings the total number of photobooths operated by the
Company in Japan to more than 15,100 at the time of this announcement.
Commenting on the acquisition, Serge Crasnianski, Deputy Chairman and CEO,
said:
"We are delighted to have completed this acquisition which is aligned to our
strategy of further consolidating our leading market position in our core
markets, as well as making selective bolt-on acquisitions. It significantly
expands our operations in Japan, increasing our installed estate in Asia
Pacific to more than 15,100 photobooths and positions the Group as the leading
photobooth operator in the Japanese market."
Enquiries:
ME Group International plc +44 (0) 1372 453 399 | ir@me-group.com
Serge Crasnianski, CEO
Stéphane Gibon, CFO
Hudson Sandler +44 (0) 20 7796 4133 | me-group@hudsonsandler.com
(mailto:me-group@hudsonsandler.com)
Wendy Baker
Nick Moore
NOTES TO EDITORS
ME Group International plc (LSE: MEGP) operates, sells and services a wide
range of instant-service vending equipment, primarily aimed at the consumer
market.
The Group operates vending units across 19 countries and its technological
innovation is focused on four principal areas:
· Photo.ME - Photobooths and integrated biometric identification
solutions
· Wash.ME - Unattended laundry services and launderettes
· Print.ME - High-quality digital printing kiosks
· Feed.ME - Vending equipment for the food service market
In addition, the Group operates other vending equipment such as children's
rides, amusement machines, and business service equipment.
Whilst the Group both sells and services this equipment, the majority of units
are owned, operated and maintained by ME Group International plc. The Group
pays the site owner a commission based on turnover, which varies depending on
the country, location and the type of machine.
The Group has built long-term relationships with major site owners and its
equipment is generally sited in prime locations in areas of high footfall such
as supermarkets, shopping malls (indoors and outdoors), transport hubs, and
administration buildings (City Halls, Police etc.). Equipment is maintained
and serviced by an established network of 650 field engineers.
In August 2022 the Company changed its listed entity name to ME Group
International plc (previously Photo-Me International plc) to better reflect
the Group's diversification focus and business strategy.
The Company's shares have been listed on the London Stock Exchange since 1962.
For further information: www.me-group.com (http://www.me-group.com)
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