H.I.S. Co., Ltd. is set to acquire an 80% stake in South Wing Co., Ltd., the operator of the "KID HOUSE" souvenir shops in Okinawa, for ¥960 million, aiming to leverage synergies between travel and retail.
Target Information
H.I.S. Co., Ltd. has announced its intention to acquire South Wing Co., Ltd., which operates the souvenir shop "KID HOUSE" in Okinawa Prefecture. The acquisition is aimed at enhancing synergies with H.I.S.'s core travel business. South Wing currently operates six stores located in the bustling Kokusai Street area of Naha City, with reported revenues of ¥998 million and an operating profit of ¥174 million for the fiscal year ending August 2025. The company's net assets are valued at ¥989 million.
Industry Overview
The souvenir retail industry in Japan has seen notable growth, particularly in tourist-heavy regions such as Okinawa. With an increasing number of international visitors, local businesses are capitalizing on the demand for unique and culturally relevant products. Okinawa, known for its rich cultural heritage and scenic beauty, has become a significant tourist destination, further energizing the local retail market.
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In recent years, consumer behavior has shifted toward purchasing local souvenirs that reflect personal experiences during travels. This trend not only boosts sales for souvenir shops but also enhances the over
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Disclosed details
Transaction Size: $64M
Revenue: $68M
EBITDA: $17M
EBIT: $17M
Net Income: $8M
Enterprise Value: $64M
Equity Value: $64M
Multiples
EV/EBITDA: 3.9x
EV/EBIT: 3.9x
EV/Revenue: 1.0x
P/E: 7.6x
P/Revenue: 1.0x