Japan’s Kirin Holdings will buy Australia’s Blackmores for A$1.88 billion in a plan already signed off by the supplements giant’s largest shareholder and board.
In an all-cash offer, Kirin will pay $95 per Blackmores share and fold the company into its Health Science Business Division. The offer represents a 23.7 per cent premium over Blackmores’ last trading price.
The deal – which will be subject to regulatory clearance given the company will transition into foreign ownership – is expected to be completed in late July, with Blackmores to be delisted from the ASX in early August.
Marcus Blackmore, the company’s largest single shareholder who holds or controls about 18 per cent of the company’s stock has confirmed that he has agreed with Kirin to accept the deal. The board has unanimously agreed to the offer.
“The Kirin Scheme represents an attractive, all-cash transaction,” said chair Wendy Stops. “The Blackmores board believes the [offer] represents appropriate long-term value for the company and an attractive outcome for Blackmores’ shareholders.”
Kirin – best known for its brewing interests – operates across the food & beverage industry, pharmaceuticals and health sciences. Listed on the Tokyo Stock Exchange it has a market capitalisation of about $22.9 billion.
“Blackmores presents an exciting opportunity to transform the scale and reach of our Health Science domain,” said Kirin president and CEO Yoshinori Isozaki in a statement.
“Blackmores presents an exciting opportunity to transform the scale and reach of our Health Science domain. Kirin Group is working to create social value and economic value by solving social issues through our business activities, and we have been transforming our business from a brewing business to a business model creating value across Food & Beverages and Pharmaceuticals domains, based on the concept of “CSV” (Creating Shared Value).”
He said under Kirin’s ownership the company would look to expand Blackmores’ presence in Asia – where it already has a high profile, especially in Southeastern countries – and into new international markets.
“Kirin will continue to invest in Blackmores, its brands and its foundations in complementary medicine to accelerate its growth across the Asia Pacific region and globally,” said Takeshi Minakata, senior executive officer and president of Kirin’s health science business division. “We also recognise the strength and capability of the Blackmores team and will work with them to build on the proud legacy of the Blackmores business and to realise its full potential, whilst maintaining its headquarters and manufacturing operations in Australia.”
Blackmores has recently been working on a cost-saving program it expects to save more than $55 million and last year reported strong growth momentum.
