Blackmores sold! Japanese giant Kirin to buy iconic Aussie brand for $1.2bn
The move has been backed by Marcus Blackmore, the son of founder Maurice, and the company's largest shareholder.
Under the terms of the deal, Blackmores shareholders will receive $95.00 per share - a 23.7% premium to the last close price of $76.79.
Blackmores chair, Wendy Stops, said the Kirin scheme represented an attractive, all-cash transaction.
"The Blackmores Board believes the agreed Scheme Consideration represents appropriate long-term value for the Company and an attractive outcome for Blackmores shareholders. The Blackmores Board has accordingly unanimously recommended that Blackmores shareholders vote in favour of the Scheme, subject to customary conditions such as independent expert conclusions and no superior proposal.”
Blackmores Chief Executive Officer and Managing Director, Alastair Symington, stressed the proposal recognises the strong leadership position that Blackmores, through its brands and people, has established in the natural health sector across the Asia Pacific region over its long history.
"Importantly it also confirms the significant opportunity that lies ahead for our employees and other key stakeholders of Blackmores as both companies come together to combine their focus on growing Kirin’s health science business across the world."
For Kirin, the deal makes good on its pledge to diversify from it's traditional beverage portfolio.
The firm added the deal would significantly strengthen its Health Sciences Division, and improve access to lucrative Asian markets.
It also confirmed it would maintain Blackmores HQ and manufacturing capabilities in Australia.
Takeshi Minakata, Director of the Board, Senior Executive Officer, President of Health Science Business Division, said: “We believe Blackmores will accelerate the transformation of our Health Science Domain as both Kirin and Blackmores share a vision to improve people’s lives through our products as well as a commitment to quality, innovation and investment.
"We are excited about the growth potential for the Blackmores business and look forward to supporting its growth and development, and furthering its commitment to quality ingredients and product development. 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.
"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.”
The deal is subject to certain conditions, including informal clearance by the Australian Competition and Consumer Commission (ACCC), and approval by the Australian Foreign Investment Review Board (FIRB), and the State Administration for Market Regulation (SAMR) of the People’s Republic of China.
We'll be providing in-depth reaction and analysis to this huge deal over the coming days.
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