Pharma Foods International (TSE Prime: 2929) agreed on October 6 to buy all 124,600 shares of a Tokyo-based supplier of processed seafood, soy and farm products to hospitals, care homes and school-lunch operators. The price is ¥5.03bn, and the contract was signed the same day as the board resolution.
The target
The seller is a private equity fund, DPIP Corporate Support Fund No. 1, which owns 100% of the company. Pharma Foods describes the business as a B2B medical-food operation founded in November 2021 with ¥100mn of capital.
In the year to March 2026 it reported sales of ¥9.475bn, up from ¥9.073bn a year earlier, with operating profit of ¥542mn and net profit of ¥268mn. Pharma Foods says the company is targeting ¥10bn of sales this year.
The pitch
Pharma Foods makes functional food and cosmetic ingredients, including its main GABA-based material, and sells them to large food, beverage and cosmetics makers. It says applying those ingredients to the target's seafood products could create medical foods with added health value, strengthen its reach into hospitals and care facilities, and open consumer channels such as large supermarkets and convenience stores. Those are the buyer's expectations, not results.
The two companies have no existing capital, personnel or business ties.
Conditions
The share transfer is scheduled for October 30. Completion assumes that the Japan Fair Trade Commission's review under Article 10, paragraph 2 of the Antimonopoly Act finds no cease-and-desist order or other factor that would block it. Pharma Foods says the effect on its consolidated results is still being examined.