Japan’s Crops to acquire Singapore’s Innovare staffing service group
SINGAPORE, NNA - Japanese mobile phone sales and human resources service firm Crops Corp. will buy a 75-percent stake in Innovare Holdings Pte. Ltd., a Singapore-based group engaged in staffing and accounting services in Southeast Asia, in its first step toward overseas expansion.
The Nagoya company’s board of directors on Wednesday approved the acquisition of shares, which establishes the “foothold for its move into the Asian region,” Crops said in a statement without disclosing the value of the deal. Crops will complete the acquisition of the shares from Innovare’s biggest shareholder – Innovare CEO Harry Loh Hock Seng, on Oct. 31.
Innovare oversees 14 companies in 11 countries and areas mainly in Southeast Asia. These firms are handling work visa applications, payroll accounting, tax and insurance calculations, and other services on contracts with big global corporations, Hisateru Goto, Crops’ director in charge of business management, told NNA.
“We have never handled visa applications and other services before,” Goto said. “But we have engaged in staffing services and building management in Japan. These new business areas are close to what we have been doing as both are in the labor-intensive category.”
Crops has decided to move into Southeast Asia as the region is growing in population and geographically close to Japan while the Japanese population is declining, he said. Crops will aim to expand its business in the region through mergers and alliances, Goto added.