Yoshitsu Co., Ltd. (NASDAQ: TKLF) announced entry into a definitive agreement with All Seas Global Limited to acquire 100% equity interests in Tokyo Lifestyle Limited. This acquisition is critical in the company’s strategy to boost its business expansion in the Southeast Asia market and to advance the digital transformation of lie streaming e-commerce in its retail business.
Yoshitsu has agreed to acquire 100% of the equity interests in TL in consideration of the sum of JPY 392,000,000 in cash or USD 2,805,192. The transaction was approved by the company’s board of directors at a meeting on June 27th, 2022 with the closing expected to occur by the end of July 2022.
Mr. Mei Kanayama, the Principal Executive Officer of Yoshitsu, commented, “We are extremely pleased to take another initiative in Yoshitsu’s global business expansion. The capabilities of TL and SQNT and our expansion and digital transformation strategy are well matched. With the acquisition of TL, we expect to improve our operational efficiency and establish a solid foundation in Hong Kong to develop the Southeast Asian market further and strengthen our brand awareness in the region. SQNT is dedicated to cultivating key opinion leaders (“KOLs”), who are frequently approached by brands in the hopes that these KOLs will actively promote their products via online channels. The foregoing strategy is expected to improve our customers’ shopping experience and meet new market demands. We expect the acquisition of TL to strengthen our position in the marketplace and deliver higher value to our shareholders.”