TamJai International takes over full management of Marugame Seimen in HK

TamJai International (TJI) has taken over the full management of the nine existing Marugame Seimen's (丸龜製麵) restaurants in Hong Kong by integrating them into TamJai's self-operating network.

According to the official announcement on HKEX, TamJai signed an acquisition agreement with its controlling shareholder Toridoll Holdings Corporation (東利多株式會社), which is valued at HK$4.1 million.

The acquisition aims to build growth momentum and promote TJI's long-term sustainable development in the Hong Kong market by leveraging a multi-brand strategy. TamJai has also agreed to repay the shareholder’s loan in the aggregate amount of around HK$8.4 million on behalf of Marugame HK on the completion.

As part of the agreement, TamJai has progressed further by taking over the full management of its nine existing restaurants in Hong Kong by integrating them into its self-operating network moving forward, according to its LinkedIn post. "Leveraging a multi-brand strategy, we are poised to capture a greater share of the fast-casual segment, aiming to build growth momentum and promote its long-term sustainable development in the Hong Kong market."

TamJai believes that the acquisition will enable the group to more effectively leverage its existing resources to diversify and expand its revenue streams, according to the announcement. The acquisition is also expected to enhance the overall operational efficiency of the target group, which may, in turn, benefit the group by providing opportunities to capitalise on the target group’s advancements in business operations.

Furthermore, TamJai anticipates that the acquisition will create operational synergies by integrating supply chain management. This integration is expected to enable the group to achieve cost savings through bulk purchasing and streamlined logistics, ultimately enhancing overall profitability.

Meanwhile, TamJai considers this acquisition a strategic move to strengthen its market positioning in the competitive Hong Kong restaurant landscape. By expanding its offerings to include Japanese udon noodles, the group aims to better respond to evolving consumer preferences and dining trends, thereby enhancing its long-term sustainability and growth potential.

Furthermore, TamJai believes that the business will not be in direct or indirect competition with the group’s operations, as there is a clear and adequate delineation between the group’s business and the business. Hence, it is believed that the acquisition is beneficial to the growth and development of the group as a whole.

Don't miss: TamJai International gains franchise rights to operate new Marugame Seimen stores

TamJai International first gained the franchise rights to operate new stores for Marugame Seimen in Hong Kong back in November 2023. The master franchise agreement has an initial term of three years commencing on 13 November 2023 and ending on 12 November 2026, and may be renewed subject to mutual agreement of both parties and compliance with all applicable regulatory requirements.

Under the agreement, TamJai International is granted exclusive rights in Hong Kong to establish and operate the “Marugame Seimen” restaurant business, and license unaffiliated third parties to develop and operate the franchised restaurants.

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