(Reuters) -Japan’s Kirin Holdings said on Friday it was offering 220.7 billion yen ($1.4 billion) to acquire the rest of skin care brand Fancl Corp <4921.T> as the beer maker continues to pivot toward the health and wellness businesses.
Facing a shrinking domestic market and falling beer consumption among younger people, Japan’s legacy breweries are under pressure to expand overseas or into new markets. The Fancl deal follows Kirin’s $1.2 billion buyout of Australian vitamin maker Blackmores last year.
Kirin, which currently holds a 33% stake in Japan-based Fancl, will offer 2,690 yen for each share it doesn’t already own. Fancl said separately its board was in favour of the deal.
Fancl’s shares jumped 21% to 2,284 yen.
The tender period will last from June 17 to July 29, and Fancl will be delisted at the completion of the transaction, Kirin said. The Nikkei newspaper earlier reported on the tender offer.
Founded in 1981, Fancl is known for its skin cleansing oils and nutritional supplements distributed largely through online and catalogue sales.
($1 = 158.1900 yen)
(Reporting by Himanshi Akhand in Bengaluru and Chang-Ran Kim in Tokyo; Editing by Mohammed Safi Shamsi and Kim Coghill)
