Japan's Kirin Holdings To Buy Blackmores Ltd. For $1.24 Billion

Kirin Holdings Co Ltd of Japan will buy Blackmores Ltd for A$1.88 billion ($1.24 billion), the two companies announced on Thursday, propelling the Australian health firm's shares to a more than seven-year high.

Kirin has offered A$95 cash per Blackmores share, a 23.7 percent premium to the stock's previous finish and slightly higher than the 22.4 percent gain in morning trade.

The transaction represents an exit for a once-dominant market player that has struggled to recoup sales of its natural health supplements and vitamins since COVID-19 control measures implemented in 2020 stopped the "daigou" boom, in which Chinese consumers purchased items abroad in bulk and brought them home.

Prior to the Kirin transaction, its shares were worth one-third of what they were at the height of the daigou mania in 2016.

"Kirin... already has a strong presence in Australia, they take a long-term view of things, and they genuinely believe they can improve on how Blackmores is run, which I also support," he told.

"When you've worked for a company for 57 years, you don't want to see it fail; you want to see it succeed." I have no doubt that Kirin will keep their end of the bargain."

The Blackmores acquisition will help Kirin, owner of several top Australian beer brands, diversify its business and expand its footprint in a country that may see more exports as it mends relations with the region's largest economy, China.

The corporation, which is known for its alcoholic and non-alcoholic drinks as well as its medicines business, stated that it intends to become the Asia-Pacific region's leading consumer health research firm after acquiring similar assets in Japan and internationally.