Kirin acquires Australia’s National Foods
Kirin Holdings Company Limited has resolved to acquire all shares in Australia’s National Foods Limited,";) from Phlippines’ San Miguel Corporation by the end of 2007 and make National Foods a consolidated subsidiary.
The transaction values the business at A$2.8 billion (US$2.52 billion). Kirin will fund the transaction through debt.
In the group's long-term business framework "Kirin Group Vision 2015 (KV2015)," Kirin targets a "quantum leap in growth," with 2015 sales (including liquor tax) targeted to reach 3 trillion yen (US$0.03 billion) and contribution from overseas sales (excluding liquor tax) and operating income targeted to reach 30%.
Implementing strategies of becoming an integrated beverage group, internationalizing its businesses, and developing its health foods and functional foods business, Kirin has started its 2007-2009 Kirin Group Medium-term Business Plan KV2015 Stage 1.
Kirin has been pursuing its global strategies through business developments in China as well as investments in Lion Nathan Limited in 1998 and beverage and food conglomerate San Miguel in 2002, in which Kirin is one of the largest shareholders. Kirin has since been able to leverage the strong competitive positioning of its strategic partnerships in Asia and Oceania.
Through the acquisition of all shares in National Foods from San Miguel, Kirin will obtain a new growth opportunity in the Australian dairy products, beverages and specialty cheese businesses.
By adding National Foods' strong brands to its product portfolio, Kirin is laying the strong business foundations in the field of "food and health" business in Asia and Oceania.
The purchase of National Foods offers Kirin an opportunity of engaging with the management of Lion Nathan to explore opportunities for synergies in a range of areas as well as the new alliance of National Foods with Kirin Beverage Corporation.
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