Kirin Holdings will acquire Japanese skincare and cosmetics brand Fancl for around ?220 billion ($1.39 billion) as part of an effort to reduce its reliance on beer.
The Japanese brewer made an offer of ?2,690 per share ¡ª a 40% premium on Fancl¡¯s closing price of ?1,916.5 on Tuesday, the day before the proposal was made ¡ª to acquire the two-thirds of shares that it doesn¡¯t already own. It¡¯s a 43% premium on Fancl¡¯s Thursday closing price.
The acquisition will enable more ¡°flexible and drastic measures¡± to integrate the two companies and maximize their corporate values, Kirin said in a statement.
Kirin also bought Australian vitamins maker Blackmores for about ?170 billion last year, as its push to diversify from the beer business intensifies. The company has set itself a goal of ?500 billion in annual sales, with the health business to contribute about a fifth of sales.
Japan¡¯s alcohol companies are trying to rely less on their original products for revenue. Kirin¡¯s competitor and Japan¡¯s biggest brewer, Asahi Group Holdings, is planning to have low- and nonalcohol drinks make up 20% of its total volume by 2030.
Kirin has developed teas and yogurts with immunity-boosting ingredients, as well as supplements for health issues such as sleep and visceral fat. Other companies are also eyeing a shift into health and wellness, with Fujifilm Holdings, known for its photography business, making medical examination devices using its existing film expertise.
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