Tue 2nd Jul 2019 - YO! acquires US sushi kiosk operator SnowFox YO! acquires US sushi kiosk operator SnowFox: YO! Sushi, the Richard Hodgson-led group, has acquired SnowFox, one of the largest operators and owners of franchised sushi kiosks in the US, creating one of the largest Japanese food companies outside Japan. The merger has been facilitated by Mayfair Equity Partners, which partnered with YO!’s management team as part of a management buyout in 2015. Following the merger the expanded group will consist of SnowFox, YO!, Bento Sushi and Taiko Foods, four fast-growing businesses with $425m of sales (including franchisee sales), of which almost two-thirds originate from North America. JFE Franchising, operating as SnowFox, was founded in 2005 and is a wholly owned subsidiary of Jim Kim Holdings. SnowFox is the third-largest sushi kiosk business in the US, managing more than 700 full-service sushi kiosks across 30 states, primarily in supermarkets. SnowFox’s strategy has been driven by chairman Jim Kim, who will join the board of the combined group as part of the merger while remaining a significant shareholder. SnowFox president Stacy Kwon has been crucial to the business’ success and, alongside Bento Sushi chief executive Glenn Brown, will become co-president of the group’s North American operations, responsible for driving growth and executing the group’s strategy. They will both report into group chief executive Hodgson. Since Hodgson’s appointment in November 2017, YO! has continued to execute on its strategy to diversify its business model by creating a global multi-channel, multi-format Japanese food business. Following the merger the expanded group will partner with leading retailers across North America and the UK, including Kroger, Loblaws, Walmart, Sobeys, Waitrose, Sam’s Club and Tesco, as well as operating 1,400 kiosks, seven central kitchens and 116 restaurants. In the UK, YO! recently opened a site in Ashford featuring a new-look kaiten belt and plans to open a flagship site in Westfield White City later this summer, while it is currently piloting grab-and-go kiosks with Tesco. Hodgson said: “We are delighted to partner with SnowFox given its high brand penetration, recognised product and service quality, and excellent industry relationships. Building on the successful integration of Bento Sushi starting in 2017, YO! will look to replicate this approach with SnowFox as it continues to execute its diversification strategy. By expanding its geographical presence and offering, the expanded group will meet the untapped demand of consumers around the world. Jim, Stacy and their teams exemplify the talent we wish to work with.” Kim added: “We are very proud of the business we have built over the past 14 years, commencing from humble beginnings in Houston to operating across 30 states. We are very excited about our next chapter as we work together with YO! and Bento.” Kwon said: “The US is one of the fastest-growing sushi markets globally and we estimate sushi has the potential to account for 1% of total US food retailer sales, about $10bn. This merger brings together YO!’s restaurant expertise, Bento’s company-owned and manufactured sushi expertise, and SnowFox’s franchising and retail expertise – all of which will allow us to better serve our retail partners’ every need.” Spayne Lindsay and Linklaters were advisers to YO! and Mayfair. M3 Asset Management, FocalPoint Securities, LLC and Sheppard Mullin Richter & Hampton were advisers to SnowFox.