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ME Group International PLC - Epsom, England-based instant-service equipment firm - Subsidiary ME Group Japan KK enters binding conditional absorption-type company split agreement to buy automated photobooth businesses owned by two Fujifilm Corp subsidiaries. Total consideration is capped at approximately £5.5 million. ME Group will fund the purchase through a new local loan facility or existing cash resources. Company expects to complete the transaction by the end of September, and says it could increase Asia Pacific revenue by between 20% and 30% and add about £2.2 million to pretax profit for the year ending October 31, 2024. Photobooths’ average pretax profit was about £290,000 over the last three years ended March 31.
Chief Executive Officer Serge Crasnianski says: ‘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...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.’
Current stock price: 165.74 pence, up 1.3% on Monday
12-month change: up sharply from 76.20p on July 4, 2022
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