Sellable Net Advertising Group Completes Acquisition of International Kampo Research Institute

In a significant move aimed at expanding its market presence, the Sellable Net Advertising Group has announced the acquisition of International Kampo Research Institute. This decision was finalized during a board meeting held on the day of the announcement. The company is set to acquire a portion of the stock of International Kampo Research Institute and will transition it into a wholly owned subsidiary through a stock exchange process.

Details of the Acquisition

The acquisition involves purchasing a specific number of shares to take complete ownership of the International Kampo Research Institute, a company specializing in health beverages made from natural Kampo ingredients. Their flagship product, Birusenju, has achieved notable success, boasting over 90 million units sold and an established membership network of around 80,000 members.

International Kampo Research Institute generated approximately 5 billion yen in revenue, with an operational profit of about 0.2 billion yen following the acquisition, highlighting its stable revenue base and growth potential in the health food sector. The proposed stock exchange transaction is scheduled for the extraordinary shareholders' meeting in July 2026, with the exchange effective from August 10 of the same year.

Strategic Goals

The acquisition aligns with the Sellable Net Advertising Group's strategy to leverage its existing direct-to-consumer (D2C) marketing expertise while utilizing the strengths of International Kampo Research Institute, which include product development capabilities, a robust customer base, and valuable brand equity. The group aims to create synergies by combining their strengths in D2C marketing, online advertising management, social media marketing, search engine optimization (SEO), customer relationship management (CRM), and cross-border e-commerce.

By capitalizing on their extensive knowledge and utilizing data-driven strategies, the Sellable Net Advertising Group plans to enhance customer acquisition, expand subscription models for recurring revenue, and broaden customer demographics through targeted marketing efforts.

The partnership also aims to tap into Asian markets for cross-border e-commerce opportunities, significantly expanding the reach of products like Birusenju.

Financial Implications

As part of the acquisition process, the valuation of both companies was conducted by an independent third-party valuation agency, ensuring transparency and accuracy in pricing for stakeholders. The official equity value derived from this assessment will guide the stock exchange ratio, which is central to the acquisition.

The transition to a wholly owned subsidiary is expected to generate positive financial synergies, reinforcing the group's existing financial strategies and resulting in long-term value enhancement for both entities.

Future Outlook

As the Sellable Net Advertising Group continues to analyze the potential impact of this acquisition on its consolidated performance, it remains committed to communicating any developments or additional insights to stakeholders promptly. The essence of this strategic move is not just to integrate operational capabilities but also to enrich the overall value proposition within the health and wellness market, directly contributing to the group's growth strategy.

In conclusion, this acquisition marks a crucial step in reinforcing the Sellable Net Advertising Group’s position within the health food sector and aims to leverage existing knowledge and strengths for sustained growth and profitability.