MEDIROM Healthcare Technologies Inc. has announced its planned acquisition of a majority stake in Japan Gene Medicine Corporation, a leader in prenatal genetic testing services in Japan. The share transfer agreement, effective June 30, 2024, will see MEDIROM acquire 70% of Japan Gene Medicine from an individual shareholder. MEDIROM has also secured an option to purchase the remaining 30% of shares. This acquisition aligns with MEDIROM’s strategic objective to offer holistic healthcare solutions and capitalize on the growing demand for prenatal genetic testing in Japan. The deal is contingent on several conditions, including the modification of existing subcontracting agreements related to the genetic testing services. MEDIROM believes the acquisition will create significant synergies with its wellness salon business, Re.Ra.Ku, which targets a similar demographic. The total consideration for the 70% stake is based on six times Japan Gene Medicine’s adjusted EBITDA, amounting to 2 billion yen. The company expects to finance the transaction through a combination of its funds and borrowings using a leveraged buy-out structure. This move is seen as strategic for MEDIROM as it aims to expand its presence in the Healthcare Technology sector and solidify its offerings in genetic testing and health monitoring solutions.

Healthcare Technology, Genetic Testing and Analysis,Japan, United States