Kirin Makes $2.6bn Dairy Acquisition in Australia
Kirin will pay about 220 billion yen in cash and assume about 74 billion yen of debt for National Foods, valuing the transaction at 294 billion yen ($2.6 billion), the Tokyo-based company said.
08/11/07 Major Japanese beverage company Kirin Holdings Co. will take over National Foods Ltd., Australia's No. 1 manufacturer of dairy products and fruit juice.
Kirin will pay about 220 billion yen in cash and assume about 74 billion yen of debt for National Foods, valuing the transaction at 294 billion yen ($2.6 billion), the Tokyo-based company said in a statement. National Foods is Australia's biggest producer of milk and juice, helping Kirin reduce its dependence on beer sales in Japan. Kirin is making the purchase at a time of rising milk and juice prices, driving up costs at the Australian company.
The takeover is aimed at reinforcing Kirin's operational basis in the Asia-Oceania region, said the company, which is a shareholder in San Miguel with a stake of 19.95 pct.
National Foods, known for the "Yoplait" yogurt brand, has 19 plants in Australia, one in New Zealand, two in Malaysia and two in Indonesia. Its sales came to some 1.84 billion Australian dollars last year.
Kirin said it will study business collaboration between National Foods and Lion Nathan Ltd., Australia's No. 2 beer maker owned 46.1 pct by Kirin, in order to create synergy.
Under its medium-term business plan, Kirin is aiming to achieve group sales of 2.15 trillion yen and operating profit of over 150 billion yen in 2009 by revitalizing its core liquor business in Japan and strengthening overseas operations as well as the medical business. For beefing up its medicine-related operations, Kirin recently announced a plan to take control of Japanese chemicals and drug maker Kyowa Hakko Kogyo Co.
