FamilyMart Co., Ltd. ("FamilyMart") has entered into a Letter of Agreement to acquire am/pm Kansai Co., Ltd. ("am/pm Kansai"), a consolidated subsidiary of Kappa Create Co., Ltd. ("Kappa Create"), following a resolution by its Board of Directors at a meeting held on January 7, 2011. Brief details are presented as follows.
FamilyMart completed its merger with am/pm Japan Co., Ltd. on March 1, 2010 and is currently in the process of converting am/pm stores to the FamilyMart brand. This conversion process is also being applied to am/pm stores located in the Kyushu area following execution of a joint-area franchise agreement with JR KYUSHU RETAIL, INC. on July 9, 2010. Building on lengthy discussions concerning am/pm stores in the Kansai region with Kappa Create, FamilyMart today entered into a Letter of Agreement to acquire am/pm Kansai.
As a result of this initiative, the Company will pursue the conversion of stores to the FamilyMart brand as it progressively receives the agreement of am/pm franchisees throughout the Kansai region. This will in turn ultimately lead to a nationwide changeover.
Moreover, in promoting this transaction, FamilyMart will not only strengthen its franchise store platform in the Kansai region, but also further benefit from streamlining of management infrastructure by sharing their operations in systems infrastructure, in addition to purchase of products and raw materials, and commodity distribution.
The Company is confident that this transaction will prove beneficial to both existing FamilyMart and am/pm franchisees, with the latter in particular gaining access to the FamilyMart package including its nationwide store network which covers all 47 prefectures, well-established brand, IT infrastructure and product development. Collectively, this is expected to further enhance overall competitiveness.
Date the Company's Board of Directors resolved to enter into a Letter of Agreement: January 7, 2011
Date the Company plans to formally sign the Agreement: End of January 2011
Scheduled acquisition date: Beginning of March 2011
The type of acquisition method to be adopted will be determined through mutual consultation between the parties concerned. Details will be disclosed as and when determined.
Moving forward, plans are in place to assess the impact of acquisition on the Company. Details will be disclosed as and when determined.PAGE TOP