H.I.S. (HIS) has announced that it will establish an intermediate holding company that will become a wholly owned subsidiary.
The company noted that travel agencies in Japan are facing multiple challenges related to their financial foundations, including business succession issues caused by a lack of successors, debt burdens resulting from the deterioration of the business environment in previous years, and insufficient capacity to invest for future growth. HIS determined that building a “business succession M&A platform” that addresses the challenges faced by travel agencies nationwide by leveraging the management foundation and expertise it has developed as a comprehensive travel company is important for the sustainable development of Japan’s travel industry.
The new company will seek to achieve both the benefits of scale by utilizing the group’s management resources and the preservation of each company’s unique identity. Going forward, participating companies will complement one another in specialized fields and regional characteristics in which they have strengths, maximizing synergies across the group.
The new company will be named Travel Business Succession NEXT Holdings and will be located in Nishi-Shinjuku, Shinjuku Ward, Tokyo. Shuta Sawada will serve as its representative director. Its business activities will include the management of group companies and related ancillary operations. It will have capital of 10 million yen, fully funded by HIS. It is scheduled to be established on November 30.
