Australia’s Blackmores vitamins snapped up by Japanese beer juggernaut in $1.88b takeover

One of Australia’s best-known companies has been snapped up by a Japanese beer giant in a takeover worth almost $2 billion.

Much-loved Aussie vitamin brand Blackmores is set to be taken over by a major Japanese firm as part of a takeover deal worth a staggering $1.88 billion.

On Thursday, Kirin Holdings – the parent company behind Lion, which owns Aussie beer brands including XXXX, Hahn and Tooheys – revealed it planned to take over 100 per cent of the country’s biggest vitamin business.

Under the plan, Kirin would pay shareholders a whopping $95 cash per share in order completely takeover the firm, with Blackmore shares jumping more than 20 per cent on the news.

Japanese giant Kirin has snapped up Australia’s Blackmores vitamin company for nearly $2 billion. Picture: AAP Image/Joel Carrett

If the deal goes through, Blackmores will be removed from the Australian Securities Exchange as soon as August.

Blackmores’ shareholders will vote on the proposed deal in a July meeting.

However, it is expected to pass easily as the Blackmores board already unanimously advised shareholders to support the deal.

Major shareholder and former chairman Marcus Blackmore – whose father Maurice Blackmore founded the company in 1932 – is also on board, declaring Kirin would be a strong “brand custodian” for Blackmores.

“I believe this presents the next evolution of the business my father founded 90 years ago,” the 78-year-old said.

He also told Reuters he had wanted a way out for 18 months after developing an “antagonistic” relationship with its board.

“When you’ve spent 57 years at a business, you don’t want to see the business suffer, and you want to see the business successful. I have no doubt in my mind that Kirin will deliver on that promise to me,” he said.

According to the Australian Financial Review, Mr Blackmore’s 18 per cent stake in the company is worth $334 million.

Marcus Blackmore will vote against the Voice to Parliament. Picture: John Feder/The Australian.

Kirin president and CEO Yoshinori Isozaki also welcomed the proposed sale in a statement.

“Blackmores presents an exciting opportunity to transform the scale and reach of our Health Science domain,” he said.

“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 Creating Shared Value.”

The looming sale comes hot on the heels of a major recent controversy which saw social media users push for a company boycott after Mr Blackmore declared his opposition to the proposed Voice to Parliament and pledged his support for Northern Territory senator Jacinta Nampijinpa Price’s ‘vote no’ campaign.

“If Jacinta tells me I should vote no, I am voting no. She obviously knows a lot more about the Aboriginal issues than I do,” he told the Financial Review in February.

His comments saw the hashtag #Boycottblackmores shoot to the top end of Australia’s Twitter trending list with outrage at Blackmore’s stance flowing in thick and fast.

At the time, a Blackmores Group spokesperson said it was not able to comment on the views of Mr Blackmore who has not been an employee or director of the company since late 2020.

“His views are completely independent of Blackmores Group,” they said.

“Blackmores is committed to supporting the health and wellbeing of all people and values and celebrates diversity, inclusivity and equality for employees, customers, partners, and those in the community.”