Kirin Holdings will acquire Japanese skincare and cosmetics brand Fancl for about ¥220 billion ($1.39 billion) as part of an effort to reduce dependence on beer.
The Japanese brewer made an offer of ¥2,690 per share – a 40% premium to Fancl’s closing price of ¥1,916.5 on Tuesday, the day before the proposal was made – to acquire two-thirds of the shares it does not already own. It is a 43% premium to Fancl’s closing price on Thursday.
The acquisition will enable “flexible and drastic measures” to integrate the two companies and maximize their corporate values, Kirin said in a statement.
Kirin also bought Australian vitamin maker Blackmores for about ¥170 billion last year as its push to diversify into the beer sector increases. The company has set a target of reaching annual revenues of ¥500 billion, with the healthcare sector contributing about a fifth of sales.
Japanese alcohol companies are trying to become less dependent on their original products for revenue. Kirin’s competitor and Japan’s largest brewer, Asahi Group Holdings, plans to have 20% of the total volume of low- and non-alcoholic drinks 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 seeing a shift towards health and wellbeing, with Fujifilm Holdings, known for its photography business, making medical research equipment using its existing film expertise.
