#Japan #Tokyo #Oisix #Shidax #Nanohana Kyushu

Strategic Acquisition to Enhance Meal Services

In a significant move to bolster its meal service capabilities, Shidax Food Service, a subsidiary of Oisix, announced its initial merger and acquisition (M&A) deal since joining the Oisix group. Effective from April 1, 2026, Shidax will incorporate the meal service business of Nanohana Kyushu. This acquisition combines the trusted hospitality established in the Kyushu region by Nanohana Kyushu with Oisix’s expertise in efficiency and value-added services, ensuring a more sustainable operational model for meal provision.

Background: Challenges in the Meal Service Sector

The meal service sector currently faces structural challenges, including rising ingredient prices and a severe workforce shortage, making it difficult for individual businesses to tackle these issues alone. Oisix aims to upgrade the meal service infrastructure through strategic industry ties, including M&A. Conversely, Nanohana Kyushu, along with its parent company, Medical System Network, sought a successor firm with a strong operational foundation to ensure sustainable regional business in the future. The shared commitment to value both customers and employees led to this strategic succession.

Overview of the Acquired Company: Nanohana Kyushu

Established on April 26, 1990, Nanohana Kyushu has provided meal services primarily for elderly facilities and hospitals in the Kyushu region. Emphasizing nutritional balance and safety, their services are delivered by qualified dietitians and chefs. The company has honed its expertise in the medical and welfare sectors to support the health of patients and residents, providing reliable service. Their offerings include:

• - Meal services for hospitals and elderly care facilities
• - Special dietary meals and meals suitable for those with swallowing difficulties or allergies
• - Nutritional guidance and menu development by certified dietitians
• - Optimization of food supply and cooking operations

Synergies from the Acquisition

Shidax intends to sustain employee job security while enhancing operations with its resources. The integration of Nanohana Kyushu will expand Shidax's presence in the Kyushu area from 46 to 78 facilities. The key improvements will focus on three areas:
1. Operational Efficiency: By utilizing group management techniques and implementing digital transformation (DX), Shidax aims to reduce kitchen workload and enhance the quality of meal preparations for the elderly and patients.
2. Career Development: Shidax’s training programs and support for certification will pave pathways for employees’ careers that connect locally to the global stage.
3. Expansion of Service Framework in Kyushu: With an increased number of facilities, the local service provision system will be significantly strengthened, ensuring better meal accessibility for the community.

Comments from the Parent Company

A representative from Medical System Network commented, "We decided to transfer the meal business of Nanohana Kyushu to Shidax Food Service to sustain and grow our regionally-rooted business. Given the current challenges of rising ingredient and personnel costs, a merger with a company possessing strong management capabilities and specialized skills was deemed optimal. Through this acquisition, we expect the established business to flourish under a new framework while maintaining its commitments to employees and stakeholders."

New M&A Consultation Window

To support businesses contemplating continuity or transfer, a new 'M&A Consultation Window' has been set up. This initiative welcomes inquiries from companies involved in providing meal services, including employee cafeterias, elderly care, hospitals, daycare centers, and schools, as well as intermediary organizations. Inquiries can be directed to the following link: M&A Consultation

About Shidax Food Service

Shidax Food Service was founded in 1959. It became a corporation in 1960 and now operates around 800 locations nationwide. The company is committed to providing delicious meals that are safe and health-conscious, catering primarily to kindergartens, hospitals, and eldercare facilities.

About Oisix

Oisix, through its major brands such as Oisix and Radish Boya, offers a subscription-based delivery service focusing on safe agricultural products and meal kits. The company has several subsidiaries engaged in providing food services across various sectors, including hospitals and elder care. Oisix actively seeks to address food-related social issues and is dedicated to reducing food waste from farm to table. Their efforts include sustainable retail solutions and utilizing misfit produce effectively.