Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
MEDIROM Healthcare Technologies (Nasdaq: MRM) shares are rallying premarket on news that it has entered into a deal to acquire ZACC Kabushiki Kaisha.
ZACC is a Japanese hair salon operator of the “ZACC” brand. It owns and operates three luxury hair salon brands, ZACC vie, ZACC raffine, and Zacc ginza.
MEDIROM will acquire the company through a two-stage acquisition for total consideration of $3.4million.
The first stage of the acquisition is scheduled to close on October 1, when shareholders of ZACC will transfer 60% of the shares to the company. The second stage, when the remaining shares of ZACC will be transferred to the company, is scheduled to close on January 1, 2022.
The purchase price will be paid by cash on hand, with an initial payment of $627,112.20 made on August 31. Payments of approximately $1.4 million and $1.3 million will be made on October 1, 2021, and January 1, 2022, respectively.
MEDIROM Founder and CEO Kouji Eguchi commented: “We continue to pursue the growth of our business by acquiring assets that expand our presence throughout Japan.
“We aim to combine mutual services such as high-end beauty services and relaxation services by leveraging the high brand power of ZACC and the Company and to support opening of new ZACC brand salons by sharing the company's expertise in franchising, employee independence programs, etc.”
So far premarket on Thursday, MEDIROM's shares have climbed to $11.47, up 55.23% from Wednesday's close.
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