Kyokuto Holdings, Promoting Roll-up Strategy for Food Industry 'Behind-the-Scenes' Sector, Raises 800 Million Yen from Dual Bridge Capital

Kyokuto Holdings Co., Ltd. (Headquarters: Shibuya-ku, Tokyo; Representative Director: Takayuki Taguchi; hereinafter 'the Company') announces that it has raised a total of 800 million yen through a third-party allotment of shares to the 'DBC No. 2 Investment Limited Partnership' managed by Dual Bridge Capital Co., Ltd. (Representatives: Shusuke Terada, Shun Ito). Through this first acceptance of external capital, the Company will accelerate its roll-up strategy in the food industry, strengthen its management foundation, and prepare for an IPO. The DBC No. 2 Investment Limited Partnership is a growth-support fund established by Dual Bridge Capital, characterized by co-founding investments, M&A execution support, and Pre/Post IPO support. In Japan, the food industry is a fragmented market where small and medium-sized enterprises account for 97.4% of food manufacturers (as of June 2024). Given that about half of these companies lack successors (as of 2025), the need for business succession is expected to rise. Beyond the lack of successors, the need for restructuring among small and medium-sized food-related companies is rapidly increasing due to labor shortages, rising raw material costs, and aging production facilities. Meanwhile, the Japanese food industry possesses many companies with long-cultivated manufacturing technologies, quality control know-how, and brands. The Company Group defines B2B companies that support the value chain of the food manufacturing industry as 'behind-the-scenes companies' and is promoting a 'roll-up strategy for the behind-the-scenes industry in processed foods' by continuously executing M&A of such companies. Currently, the company is expanding its business domain, focusing on food additives, auxiliary ingredients, and food machinery, having executed six M&As to date. With this funding, the company will strengthen its M&A execution capability and financial foundation, while further accelerating PMI promotion, quality assurance system development, and talent acquisition to enhance corporate value.