Recently, according to reports, Japanese beer manufacturer Kirin Holdings announced that it will acquire the remaining shares of Japanese beauty and health food retailer Fancl, making Fancl its wholly-owned subsidiary.
Public records show that Kirin Holdings is one of Japan’s three major beer companies and one of the world’s top ten beer groups. Kirin Holdings has been sold since 1888 (Kirin Holdings was established in 1907).
It is understood that in 2019, Kirin Holdings invested about 130 billion yen ($821.9 million) to acquire a 33.0% stake held by Fancl’s founders and others. The purpose of this move was to collaborate with Fancl to develop and produce foods, beverages, and health products aimed at extending consumers’ healthy lifespans in the context of an aging population both domestically and internationally.
It is reported that Kirin Holdings is expected to pay about 210 billion yen ($1.33 billion) to purchase the remaining shares of Fancl and plans to complete the transaction by the end of this year. This move aims to help strengthen its health food business. In other words, the total investment by Kirin Holdings amounts to approximately 340 billion yen ($2.14 billion) in two stages.
It is worth noting that Fancl is expected to accept Kirin Holdings’s acquisition and will delist after the acquisition is completed.
According to the disclosed latest financial report, Kirin Holdings’s consolidated sales for the first three months of this year were 110.8 billion yen ($700.5 million), a 7% increase compared to the same period last year. Operating income was 12.5 billion yen ($79 million), a year-on-year increase of 60%.
