ME Group buys photobooth business in Japan

ME Group International plc entered into an agreement, through its ME Group Japan K.K. subsidiary, with Fujifilm Corp. to buy two automated photobook businesses from Fujifilm Corp., under the names FUJIFILM Imaging Systems Co., Ltd. and N&F Techno Service Co., Ltd. The total transaction consideration is approximately £5.5 million (Japanese Yen 996 million) and is capped at that amount. The group believes that the Transaction will complete by the end of September 2023.

“We are delighted to announce the significant expansion of our operations in Japan from our current installed estate of approximately 10,500 photobooths in the region today,” said Serge Crasnianski, Deputy Chairman and CEO. “The transaction fully aligns with our strategy of further consolidating our leading market position in our core markets, as well as making selective bolt-on acquisitions.

“Demand for Photo ID in Japan remains robust, driven by the Japanese government’s social security and taxation photo ID card scheme. 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. Upon completion, the group will become the leading operator in the Japanese photobooth market and long-term contracts with site owners will provide ongoing predictable revenue streams.”

The photobooths being acquired are traditional photobooths, delivering official photo ID pictures and are located in high-traffic locations, such as travel hubs and shopping centers throughout Japan, the company said. The average annual profit before tax derived from the Photobooths over the previous three financial years ended on March 31, 2023, is approximately £0.29 million (Japanese Yen 45 2 million), and the valuation of the gross assets on the balance sheet that are the subject of the Transaction as at March 31, 2023, was £2.98 million (Japanese Yen 469 million).