(Aug 7): Japan’s Kirin Holdings Co said it’s open to more acquisitions after a deal to buy Canadian vitamins and supplements maker Jamieson Wellness Inc valued at C$2 billion (US$1.4 billion or RM5.72 billion).

“We see significant opportunities in North America,” Kirin president Takeshi Minakata said on Friday in Tokyo. “We intend to use Jamieson’s distribution channels, brand and customer relationships as a foundation while looking for ways to take the business to the next level. As part of that process, we may also consider additional M&A.”

Best known for its beer and whisky, Kirin has been building wellness into a third major business pillar alongside beverages and pharmaceuticals as Japan’s shrinking population and changing drinking habits weigh on the long-term outlook for its traditional alcohol business. It’s paying C$45.75 per share in cash for Jamieson — a 27% premium to the 20-day volume-weighted average price in Toronto. 

Shares of Kirin rose nearly 4% in Tokyo trading on Friday after the deal was announced. Minakata said Kirin had been exploring potential investments in North America since 2020. 

The Jamieson purchase follows Kirin’s A$1.88 billion (RM5.41 billion) acquisition of Australian vitamins maker Blackmores in 2023 and its move to take full control of Japanese supplements and skincare company FANCL in 2024. Kirin has said it aims to become one of the largest health-science companies in the Asia-Pacific region.

The transaction values Toronto-based Jamieson at about C$2.5 billion on an enterprise value basis. In June, Jamieson said it had begun reaching out to prospective bidders, confirming a Bloomberg News report, and said it had received an unsolicited proposal. 

Kirin’s rivals have also made moves to diversify business into health and supplements. Suntory Holdings Ltd agreed in April to acquire Daiichi Sankyo Healthcare, while Asahi Group Holdings Ltd markets nutritional supplements through its food division. 

Jamieson sells vitamins, minerals and supplements under its namesake brand as well as youtheory, Progressive and Smart Solutions. The company’s revenues climbed to C$169.8 million in the first quarter, a 16% increase year over year. Its annual revenues have doubled since the Covid-19 pandemic.

The company has expanded beyond its core Canadian business in recent years through acquisitions and international growth initiatives, including a push into China and the 2022 acquisition of US supplement brand youtheory.

The transaction is expected to be completed in the fourth quarter.

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