S Foods Inc. (TSE:2292) signed a basic agreement to acquire food business from Hokuryo Co., Ltd. (TSE:1384) for ¥520 million on January 12, 2018. Hokuryo Co., Ltd. will establish a new company, S Foods Hokkaido Co., Ltd. tentatively by January 22, 2018, to transfer the food business. Afterwards, S Foods Inc. will subscribe to ¥18 million capital increase of S Foods Hokkaido Co., Ltd. tentatively by March 15, 2018.

The agreement is expected to be signed by January 31, 2018. The transaction is expected to close by April 1, 2018.