LEIFRAS acquires four childcare facilities in Miyagi Prefecture

TOKYO, March 9, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, announced today that on February 27, 2026, the Company entered into a business transfer agreement (the "Agreement") with Well Resources Co., Ltd. ("Well Resources") to acquire four child development support and after-school daycare facilities in Miyagi Prefecture, Japan. Well Resources is an operator of child welfare facilities and elderly care facilities in Japan. The acquisition is a critical initiative to accelerate profit growth in Leifras' social business segment and establish a leading position in the Northeastern Japan market via focused expansion in the region. The transaction is expected to close on May 1, 2026.

This acquisition represents Leifras' first M&A transaction since its Nasdaq listing and marks a key milestone in the Company's "Second Founding Period" strategy. The initiative is designed to fuel profit growth through capital investment into the social business segment, Leifras' primary growth area, leveraging the publicity and financial strength gained through its Nasdaq listing. The four facilities to be acquired maintain occupancy rates of nearly 100% and are supported by a team of 23 professionals holding national licenses, such as Physical Therapists (PT), Occupational Therapists (OT), and Speech-Language Pathologists (ST). The Company expects the acquisition to enhance its competitive advantage in the therapeutic education market, where entry barriers are rising, thereby maximizing corporate value.

Overview of Business Acquisition

• Target Business: Well Resources' four after-school daycare service facilities, including Sora Fune Kami-Sakuragi Physical Education Support Classroom, Sora Fune Black Pine Physical Education Support Class, Sora Fune Takasago Physical Education Support Classroom, and Jupiter Rikuzen Takasago After-School Day Care Service.
• Date of Business Transfer Agreement: February 27, 2026
• Expected Business Transfer Closing Date: May 1, 2026

Strategic and Financial Significance

Leifras' social business segment (mainly consists of club activity support and after-school daycare services) recorded revenue growth of 36.4% year-on-year in the third quarter of the fiscal year ended December 31, 2025, driving the Company's overall performance with a high growth rate. The acquisition is a strategic move aimed to accelerate the momentum and establish a solid foundation for sustainable revenue growth.

Immediate Revenue and Earnings Contribution

The four target facilities maintain occupancy rates of nearly 100% and have built strong reputations among local communities and counseling support agencies. Given that these assets are fully operational and do not rely on paid advertising, the Company expects immediate top-line and bottom-line contributions following closing, without ramp-up costs typically associated with de novo openings.

Scarce Specialized Talents Secured at Scale

In Japan, "high-quality support provided by professionals" has a strict requirement in the after-school daycare service market, and the ability to recruit high-quality specialized professional staffing is a critical entry barrier in the service market. Through this transaction, Leifras expects to retain 23 specialized staff members holding national licenses, such as Physical Therapists (PT), Occupational Therapists (OT), and Speech-Language Pathologists (ST), reducing the time and financial costs associated with recruitment while ensuring high-quality service delivery.

Focused Business Expansion and Synergy Creation in Northeastern Japan

Leifras plans to combine the expertise gained from its nationwide after-school daycare service "LEIF" with the core offerings of the target facilities: "physical activity (therapeutic exercise)" and "desk-bound habit formation (learning support)." The Company expects this integration to generate operational synergy and advance its focused expansion in the Northeastern Japan area while optimizing operational efficiency.

Reducing Post-Merger Integration ("PMI") Risks Through Friendly Business Transfer

This transaction represents a friendly business transfer aimed at enhancing service value without altering the environment for children attending the facilities. The employees working at the target facilities are expected to maintain employment terms no less favorable than their current terms, minimizing the risk of talent loss. Following the closing, the Company plans to swiftly integrate its sports expertise and digital transformation infrastructure to ensure a smooth PMI.

Future Prospects: Long-Term Growth with Potential Additional M&As

Leifras intends to use this transaction as a successful model for future roll-up M&As targeting high-quality sports schools and therapeutic education facilities nationwide. As a Nasdaq-listed company, Leifras believes its access to capital markets and a strengthened governance framework will position it to pursue consolidation opportunities in Japan's fragmented sports and therapeutic education market and drive sustainable growth as a social business platform centered on "Sports × IT × Global."

For more information, please visit the Company's website: https://ir.leifras.co.jp/.