NEW YORK: MEDIROM Healthcare Technologies Inc., a leader in the health management services industry, has announced its decision to acquire Japan Gene Medicine Corporation, aiming to make it a subsidiary.

The announcement came following a Board of Directors meeting on March 29, 2024, where a Memorandum of Understanding (MOU) was agreed upon to initiate the acquisition process.

The proposed transaction is valued at approximately 2.4 billion yen, with the final price contingent upon the results of due diligence.

The price determination will be based on the Target Company’s adjusted EBITDA in the testing business, multiplied by a factor of five, as per the MOU executed on April 2, 2024.

Both parties have committed to negotiating in good faith to finalize the definitive agreement by May 31, 2024.

MEDIROM, known for its iconic brand “Re.Ra.Ku®︎,” and its foray into healthtech with products like the “Lav®︎” on-demand training application, the innovative “MOTHER Bracelet®︎,” and the “REMONY” monitoring system, is actively seeking expansion into new markets.

The acquisition target, Japan Gene Medicine Corporation, specializes in prenatal diagnosis, offering genetic testing and analysis services.

This move is expected to create business synergies, particularly as the services cater to women in their 20s to 40s, aligning with the demographic of MEDIROM’s primary customer base.

MEDIROM’s strategic acquisition is part of its broader vision to become a comprehensive healthcare provider, offering services ranging from prevention to treatment, thereby enhancing its corporate value and expanding its footprint in the Japanese market.