Kirin Holdings Co. announced on Friday its intention to acquire the remaining shares of Fancl Corp. it doesn't already own for approximately $1.4 billion. This move is a part of the Japanese beverage giant's ongoing expansion into the consumer health sector.

Strategic Acquisition to Bolster Health Sector Presence

The acquisition will be executed through a tender offer, following Kirin's initial 2019 purchase of about 33% of Fancl, a renowned Japanese supplement and cosmetics company. This comes on the heels of Kirin's $1.2 billion acquisition of Blackmores Ltd., an Australian health food company, last year. The transaction underscores Kirin's strategic pivot from its traditional beer and beverage operations to health-related products, aligning with its "Kirin Group Vision 2027" strategy.

Kirin Plans $1.4B Fancl Purchase : Kirin's Vision 2027

Kirin's overarching goal is to "become one of the largest health science companies in Asia-Pacific," according to a statement released by the company on Friday. With Fancl as a wholly-owned subsidiary, Kirin aims to leverage the unique strengths of both companies to create a robust and competitive business model. This model will capitalize on the mutual utilization of management resources and the promotion of integrated management.

Kirin Plans $1.4B Fancl Purchase : Health Science Focus

The strategy is built on launching businesses within the health science field, alongside food and pharmaceuticals, and turning consumer health challenges into growth opportunities. Kirin and Fancl are particularly focused on "commercializing ingredients created through the natural technology of fermentation," enhancing each company's capabilities through shared resources and integrated management.

Shareholder Approval and Next Steps

Fancl's board supports the acquisition and recommends that shareholders tender their shares during the offer period from June 17 to July 29. Following the transaction's completion, Fancl will become a wholly-owned subsidiary of Kirin.

Kirin and Fancl did not immediately respond to requests for additional comment and counsel information.