LONDON, UK: ME Group, a leader in instant-service equipment, has announced the divestiture of its subsidiary, Sempa, to Food Machine Invest, a French entity. The transaction, completed on May 20, 2024, saw ME Group GSS relinquish its entire stake in Sempa for a cash sum of €4.6 million.
The decision to sell comes after a thorough review of Sempa’s performance, with the Board opting to concentrate on ME Group’s foundational business model—operating automated vending equipment for commissions or fixed fees. This strategic refocus aligns with the company’s successful recovery of its initial investment in Sempa, made in 2019, through the subsidiary’s profits, thereby avoiding any significant financial write-downs post-transaction.
ME Group’s commitment to its core operations is further evidenced by its ongoing management of 441 orange juice vending machines across Japan, a testament to its international reach and operational efficiency.
Looking ahead, the Board is set to channel the proceeds from the sale into the expansion of its burgeoning photobooth and laundry segments, which have shown robust growth in the fiscal year 2023. This reinvestment strategy is part of ME Group’s broader vision for modernization and digital transformation, marking a pivotal step in its long-term growth trajectory.
ME Group International plc (LSE: MEGP) operates, sells and services a wide range of instant-service vending equipment, primarily aimed at the consumer market.
The Group operates vending units across 18 countries and its technological innovation is focused on four principal areas:
· Photo.ME – Photobooths and integrated biometric identification solutions
· Wash.ME – Unattended laundry services and launderettes
· Print.ME – High-quality digital printing kiosks
· Feed.ME – Vending equipment for the food service market
In addition, the Group operates other vending equipment such as children’s rides, amusement machines, and business service equipment.
Whilst the Group both sells and services this equipment, the majority of units are owned, operated and maintained by the Group. The Group pays the site owner a commission based on turnover, which varies depending on the country, location and the type of machine.
The Group has built long-term relationships with major site owners and its equipment is generally sited in prime locations in areas of high footfall such as supermarkets, shopping malls (indoors and outdoors), transport hubs, and administration buildings (City Halls, Police etc.). Equipment is maintained and serviced by an established network of more than 650 field engineers.
In August 2022 the Company changed its listed entity name to ME Group International plc (previously Photo-Me International plc) to better reflect the Group’s diversification focus and business strategy.
The Company’s shares have been listed on the London Stock Exchange since 1962.
ME Group expands presence in Japan with acquisition of FUJIFILM’s photobooth business
Leave a Reply