ME Group divests Sempa in strategic shift to core operations

ME Group, a leader in instant-service equipment formerly known as Photo-Me International, has announced the divestiture of its subsidiary, Sempa, to Food Machine Invest, a French entity. The transaction, completed on May 20, 2024, saw ME Group GSS relinquish its entire stake in Sempa for a cash sum of €4.6 million.

Acquired in 2019, Sempa is the leader in professional fresh-juice, self-service machines for food retailers, cafes, bars and hotels.

The decision to sell comes after a thorough review of Sempa’s performance, with the board opting to concentrate on ME Group’s foundational business model—operating automated vending equipment for commissions or fixed fees. This strategic refocus aligns with the company’s successful recovery of its initial investment in Sempa, made in 2019, through the subsidiary’s profits, thereby avoiding any significant financial write-downs post-transaction.

ME Group’s commitment to its core operations is further evidenced by its ongoing management of 441 orange juice vending machines across Japan, a testament to its international reach and operational efficiency.

Looking ahead, the company said it will channel the proceeds from the sale into the expansion of its burgeoning photobooth and laundry segments, which have shown robust growth in the fiscal year 2023. This reinvestment strategy is part of ME Group’s broader vision for modernization and digital transformation, marking a pivotal step in its long-term growth trajectory.

ME Group International plc operates vending units across 18 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.