TOHO Strengthens Animation Division with Acquisition of Science SARU

TOHO, a powerhouse in the film industry, has taken significant strides to strengthen its animation production arm. The company announced its acquisition of all shares of Science SARU, marking its incorporation as a subsidiary into the TOHO Group.

Under the leadership of CEO Eun-Young Choi, who also serves as a producer and holds all shares, TOHO will finalize the transfer of all shares on June 19, 2024, with the transfer price undisclosed. Subsequently, Science SARU will transition into a consolidated subsidiary of TOHO, effective from the second quarter of the fiscal year ending February 2025.

Despite the prevailing market challenges, Science SARU has demonstrated robust financial performance, boasting three consecutive years of profitability. For the fiscal year ending January 2024, the animation studio reported robust figures: revenue totaled ¥14.3 billion (approx. US$91 million), operating profit reached ¥4.28 billion (approx. US$27.2 million), ordinary profit stood at ¥5.26 billion (approx. US$33.4 million), and net profit amounted to ¥3.5 billion (approx. US$22.2 million).

Established in 2013 by Masaaki Yuasa and Eun-Young Choi, Science SARU is a prominent animation studio headquartered in Kichijoji, Tokyo. Renowned for its commitment to creative excellence, the studio has produced an array of theatrical animations and anime series, earning acclaim for its high-caliber visuals and global network across creative and commercial spheres.

In recent years, Science SARU has demonstrated a proactive approach to production, collaborating with diverse directors and spearheading series projects such as Heike Monogatari (The Heike Story), Yojouhan Time Machine Blues (The Tatami Time Machine Blues), and Dandadan.

The forthcoming nationwide release of Kimi no Iro (The Colors Within), the latest feature film from acclaimed director Naoko Yamada in the Summer of 2024 through TOHO distribution, underscores the interdependent potential between Science SARU and TOHO, contributing to the studio's acquisition.

This strategic acquisition aligns with TOHO's overarching vision encapsulated in its "TOHO VISION 2032 TOHO Group Management Strategy," devised in April 2022. The strategy underscores key growth areas, including "Planning & IP," "Animation," "Digital," and "Overseas," with a concerted emphasis on fostering growth through targeted investments, including mergers and acquisitions.

The integration of Science SARU into the TOHO Group is poised to significantly bolster the conglomerate's animation production capabilities, propelling accelerated growth within its anime business. Additionally, TOHO anticipates enhanced production environments and increased creative opportunities as a result of this subsidiary acquisition.

Source: Press Release, Nikkei, Animation Business Journal