M&A is not just 'buy and done.' Horii Food Service streamlines assets and builds growth foundation with Sushi Masu Foods

Horii Food Service Co., Ltd. (Headquarters: Mito City, Ibaraki Prefecture, President: Akihisa Fujita, Securities Code: 3077, TOKYO PRO MARKET) is proceeding with the transfer of fixed assets and the restructuring of its headquarters and logistics system for Sushi Masu Foods Co., Ltd., which became a consolidated subsidiary on June 1, 2026.

We emphasize that M&A is not merely an acquisition of a company, but rather a process of reviewing management resources after acquisition, organizing the business operation system, and leading to the growth of the entire group.

The transfer of fixed assets in Sushi Masu Foods is one of the concrete initiatives that demonstrate our execution capabilities after acquisition within our roll-up M&A strategy.

Sushi Masu Foods Became a Consolidated Subsidiary on June 1, 2026

At a board of directors meeting held on April 3, 2026, we resolved to acquire all issued shares of Sushi Masu Foods Co., Ltd. and make it a subsidiary.

Sushi Masu Foods, founded in 1970 and headquartered in Yao City, Osaka Prefecture, operates takeaway sushi restaurants and bento businesses under the brand name "Sushimasu," primarily in the Kinki region, including Osaka, Hyogo, Kyoto, and Nara.

Until now, we have operated our food and beverage business in the Eastern Japan area, centered in Northern Kanto. By adding Sushi Masu Foods to our group, we will acquire a business base in the Western Japan area and strengthen our system to respond to diversifying food demands by incorporating the mid-meal (chushoku) sector, such as takeaway sushi and bento.

Transfer of Fixed Assets and System Restructuring Underway at Sushi Masu Foods

We are proceeding with the procedures for the transfer of land, buildings, etc., owned by Sushi Masu Foods in Yao City, Osaka Prefecture, for the purpose of effective utilization of management resources and operational efficiency.

At a board of directors meeting held on April 30, 2026, we resolved to conclude a provisional transfer agreement for the fixed assets owned by Sushi Masu Foods. Subsequently, following Sushi Masu Foods becoming our consolidated subsidiary on June 1, 2026, we concluded the fixed asset transfer agreement on June 2, 2026.

The assets to be transferred are land, buildings, etc., owned by Sushi Masu Foods in Yao City, Osaka Prefecture. The transfer price is 400,000 thousand yen (tax included), and the transfer date is scheduled for late August 2026.

This initiative is not simply a real estate sale. It is a measure to rebuild the headquarters and logistics system according to the scale of Sushi Masu Foods' business and to conduct post-acquisition business operations more dynamically and efficiently.

Moving to the Execution Phase After M&A. What Matters is 'How to Grow After Acquisition'

What we emphasize is not just the expansion of business areas through M&A.

How to utilize the management resources of acquired companies and how to connect them to profit improvement and the establishment of a growth foundation. We believe that this 'execution capability after acquisition' is crucial in a roll-up M&A strategy.

The transfer of fixed assets and the restructuring of headquarters and logistics systems at Sushi Masu Foods are precisely initiatives that demonstrate the execution phase.

We will strive to improve the corporate value of the entire group by leveraging the strengths of companies that have joined our group, while reviewing asset efficiency, operational systems, and profit structures as necessary.

Our Roll-up M&A Strategy is Also Introduced in an IRTV Video

Our M&A strategy and initiatives for creating synergy with group companies are also introduced in a video currently available on IRTV.

Video Title: [Acquired 2 Companies in Half a Year] "Roll-up M&A Strategy" a Must-See for Individual Investors! Early Profitability and Dividend Expansion Achieved Through Parent Company Synergy | Horii Food Service (3077)

In this video, we explain our roll-up M&A strategy, our approach to post-acquisition profit improvement, and our growth policy for the entire group in an easy-to-understand manner for individual investors.

The transfer of fixed assets and the restructuring of headquarters and logistics systems at Sushi Masu Foods are concrete initiatives that demonstrate our M&A strategy from an execution standpoint.

Please watch this video along with the disclosure documents.

IRTV Video: https://youtu.be/cA_IPGovELk?si=CjpAYX5kZJU-BaQ4

Future Outlook

We will continue to strive to improve corporate value by expanding business areas through M&A, improving management after acquisition, and increasing asset efficiency, in addition to improving the profitability of existing businesses.

Regarding Sushi Masu Foods, we will promote synergy creation with our group while leveraging its business base in the Kinki region, its operational know-how in the takeaway sushi and bento business, and its brand power rooted in the region.

We position M&A as one of the important pillars of our growth strategy and will promote a roll-up M&A strategy accompanied by post-acquisition execution.

Company Profile

Company Name: Horii Food Service Co., Ltd. Location: Mito City, Ibaraki Prefecture Representative: President Akihisa Fujita Securities Code: 3077, TOKYO PRO MARKET Business Activities: Operation of restaurants, development of various food and beverage businesses Official Website: https://www.horiifood.co.jp/

Notes Regarding This Matter

This article is intended to clearly convey our M&A strategy and post-acquisition initiatives to individual investors, based on the disclosure information published by our company on April 3, 2026, April 30, 2026, and June 2, 2026.

We will promptly announce any matters that require disclosure in the future.