MEDIROM Healthcare Technologies Inc. Announces The Acquisition of Relaxation Salon Business under the Brand Name of “Ruam Ruam”
MEDIROM Healthcare Technologies Inc. (MRM) announced the acquisition of 100% ownership of SAWAN CO.
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Rhea-AI Summary
MEDIROM Healthcare Technologies Inc. (MRM) announced the acquisition of 100% ownership of SAWAN CO. LTD., operator of the luxury relaxation brand Ruam Ruam, from BOX GROUP. This acquisition, closing on May 6, 2021, will add ten salons to MEDIROM's existing network. Founder Kouji Eguchi stated that this move aligns with their strategy to enhance brand presence in Japan. The purchase will be financed using cash on hand and short-term liabilities, with no equity issued to the seller.
Positive
- Acquisition expands MEDIROM's footprint with 10 additional Ruam Ruam salons, boosting brand presence in Japan.
- Potential synergies from integrating SAWAN's operations with MEDIROM's existing management capabilities.
Negative
- None.
Details
News Market Reaction – MRM
The recorded move for MRM in the trading session of this news was -14.35%.
Data tracked by StockTitan Argus. Session date unavailable.
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NEW YORK, April 30, 2021 (GLOBE NEWSWIRE) -- MEDIROM Healthcare Technologies Inc. (NasdaqCM: MRM, “MEDIROM”), a leading holistic health services provider in Japan, announced today that MEDIROM has acquired
In addition, SAWAN entered into an agreement with Nine Roots Co., LTD., the sole franchisee of Ruam Ruam, to acquire its five (5) franchised salons across the Tokyo metropolitan area. After the acquisition of the franchised salons and related salon consolidation, SAWAN will directly operate ten (10) salons under MEDIROM’s ownership.
“This acquisition follows closely our ongoing strategy to attract and acquire assets that expand our presence throughout Japan, providing therapeutic and relaxation services to the Japanese consumer utilizing a familiar and reliable brand,” commented MEDROM Founder and CEO Kouji Eguchi. “We anticipate incorporating Ruam Ruam’s ten salons into our network, which will provide the opportunity to utilize our existing salon management capabilities, including salon operation management, recruiting platform, and our Re.Ra.Ku® college training platform to generate synergies from this acquisition, expanding and enhancing the Company’s overall brand portfolio and geographic coverage.”
The acquisition is scheduled to be closed on May 6, 2021. The purchase price will be paid by cash on hand and non-interest-bearing short-term liabilities. No shares will be issued to the seller or its affiliates.
About MEDIROM Healthcare Technologies Inc.
MEDIROM operates 303 (as of March 31, 2021) relaxation salons across Japan, Re.Ra.Ku®, being its leading brand, and provides healthcare services. In 2015, MEDIROM entered the health-tech business, and launched new healthcare programs using on-demand training app called "Lav®", which is developed by the company. MEDIROM also entered the device business in 2020 and is developing a smart tracker "MOTHER Tracker®". MEDIROM plans to expand the scope of its business to include data analysis utilizing the data it has collected since formation of the company.
URL ： https://medirom.co.jp/en
Contacts:
Investor Relations Team
ir@medirom.co.jp
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