Longreach to acquire Japanese coffee shop Kohikan
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Asian private equity firm The Longreach Group has agreed to totally acquire Japanese coffee shop chain Kohikan Corporation from UCC Foodservice Systems (UFS) for an undisclosed amount.
In a statement on its website, Longreach says it has reached an agreement with UFS to buy 100 per cent of its subsidiary Kohikan. The deal is expected to close on May 1.
Longreach says the investment would be an opportunity with a clear business growth path in the premium coffee business in Japan “with a potential to expand into high-growth Asian markets”.
Established in 1970, the chain has 277 stores throughout Japan under the brand names Cafe di Espresso Kohikan, Karakuan, Kakura and Kohikan.
“Longreach will accelerate Kohikan’s growth through enhancing the stores’ format and via expansion,” says the firm. Set up in 2003 by former UBS Securities Japan CEO Mark Chiba and former Morgan Stanley executive Masamichi Yoshizawa, Longreach has experience in restaurant chains and owns Wendy’s First Kitchen.
Questions & Answers
Q.Which specific coffee shop brands are included in this acquisition by The Longreach Group?
Which specific coffee shop brands are included in this acquisition by The Longreach Group?
The acquisition includes all 277 stores operating under the brand names Cafe di Espresso Kohikan, Karakuan, Kakura, and Kohikan. These stores are located throughout Japan, with the original Kohikan chain established in 1970.
Q.What is Longreach's stated strategy for growing the Kohikan coffee shop business?
What is Longreach's stated strategy for growing the Kohikan coffee shop business?
Longreach plans to accelerate Kohikan's growth by enhancing the format of its existing stores. The firm also intends to pursue expansion within Japan and potentially into other high-growth Asian markets, according to its statement.
Q.When is this acquisition deal expected to be finalised?
When is this acquisition deal expected to be finalised?
The deal for The Longreach Group to acquire Kohikan Corporation from UCC Foodservice Systems is expected to close on May 1. The total acquisition covers 100 per cent of Kohikan.
Q.Does Longreach have prior experience investing in restaurant or food service chains?
Does Longreach have prior experience investing in restaurant or food service chains?
Yes, The Longreach Group has previous experience in the restaurant chain sector. The firm currently owns Wendy's First Kitchen, indicating its familiarity with managing and operating food service businesses.
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