Refrigeration specialist Hoshizaki Corporation has moved to bolster its offering in the European market by agreeing to acquire shares in Turkish foodservice equipment manufacturer Özti.
The company, which also owns the Gram refrigeration brand, said the deal would expand its business outside of its native Japan – which it sees as the key to future growth – and increase net sales and market share.
The company said in a statement: “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 extensive sales channels across major cities in the Middle East, Europe and African regions.”
Bosses at the Tokyo-listed firm are eager to gain more exposure to emerging economies with high potential growth and think that Özti’s geographic coverage holds the key to achieving this.
They also see it as a way to grow their overall refrigeration business in addition to ice machine sales.
Özti’s existing management team will continue to lead the business, which Hoshizaki said would increase its chances of expanding its market share in Europe.
It also expects to create a “synergy” with Özti through its manufacturing of refrigerators in a bid to “bolster product development, product range and price competitiveness as well as productivity and enhanced quality”.
The Turkish firm also manufactures suites and other cooking equipment, warewashers, fabrications and light equipment.
In terms of the transaction, Hoshizaki will initially acquire 28.6% of Özti’s shares through capital injection.
It will then buy shares from existing shareholders in separate stages over the next 3 years until it owns 51% and can make Özti a Hoshizaki subsidiary.
Özti made sales of ¥9,753m (£69m) in 2018 and an operating profit of ¥105m (£740,000).