Hoshizaki Corporation announces that the Board of Directors, held on November 7, 2019, has made a decision to acquire the shares of a Turkish manufacturer of commercial kitchen equipment, Öztiryakiler Madeni Eşya Sanayi ve Ticaret Anonim Şirketi (hereafter referred to as Özti) based on the equity method.
Further details:
1. Purpose of the share acquisition Hoshizaki is proactive in expanding its business market outside Japan, which is the key to future growth, to increase net sales and market share focusing on emerging economies with potential growth, as well as on the developed countries which the company already pursues. In addition, it is important to seek sales growth of commercial kitchen equipment such as commercial refrigerators, in addition to the sales of commercial ice machines, as main products for business growth overseas.
Özti is an entity with full of potential for growth and profitability as it offers highly competitive low-cost products and their production systems, leveraging their extensive sales channels across major cities in the Middle East, Europe and African regions.
Hoshizaki invest in Özti while the company’s existing management continues to lead the business with their in-depth knowledge about the markets in the Middle East, Africa and Europe. In this way, company expect to expand the market share for group products in Europe and create a synergy with Özti through their manufacturing of refrigerators, with support, thereby bolstering product development, product range and price competitiveness as well as productivity and enhanced quality.
2. Share acquisition overview
Hoshizaki will acquire Ozti’s shares through capital injection and acquisition of existing shares to hold a total of 28.6% of the company’s shares. Furthermore, Hoshizaki will acquire shares from existing shareholders in stages for the subsequent three-year period, aiming to hold 51% shares at the end of the period and to make Özti as Hoshizaki’s subsidiary.
The transaction conditions of the acquisition are confidential pursuant to the acquisition agreement.
