KIRIN will acquire Japanese skincare and cosmetics brand Fancl for around 220 billion yen (S$1.9 billion) as part of an effort to reduce its reliance on beer.
The Japanese brew made an offer of 2,690 yen per share – a 40 per cent premium on Fancl’s closing price of 1,916.5 yen on Tuesday (Jun 11), the day before the proposal was made – to acquire the two-thirds of shares that it does not already own. It’s a 43 per cent premium on Fancl’s Thursday closing price.
The acquisition will enable more “flexible and drastic measures” to integrate the two companies and maximise their corporate values, Kirin said.
Kirin also bought Australian vitamins maker Blackmores for about 170 billion yen last year, as its push to diversify from the beer business intensifies. The company has set itself a goal of 500 billion yen 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, as the government makes efforts to discourage harmful drinking. Kirin’s competitor and Japan’s biggest brewer, Asahi Group, is planning to make low- and non-alcohol drinks 20 per cent 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, known for its photography business, making medical examination devices using its existing film expertise. BLOOMBERG
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