November 8, 2007
Kirin acquires National Foods Limited,the leading dairy and beverage producer in Australia
-- Aiming at a "quantum leap in growth" by accelerating group synergies and establishing a basis for growth in the area of "food and health" in Asia and Oceania --
[Tokyo, November 8, 2007] Kirin Holdings Company Limited (Tokyo, Japan; President and CEO, Kazuyasu Kato; hereafter, "Kirin") resolved to acquire all shares in National Foods Limited (Melbourne, Australia; Managing Director, Ashley Waugh, hereafter, "National Foods,";) from San Miguel Corporation (Manila, the Philippines; Chairman and CEO, Eduardo M. Cojuangco, Jr.; hereafter, "San Miguel").
Kirin is to acquire all shares in National Foods from San Miguel by the end of 2007 and make National Foods a consolidated subsidiary. The transaction values the business at A$2.8 billion* (approximately ¥294.0 billion , including interest-bearing debt of approximately ¥200.0 billion ). Kirin will fund the transaction through debt.
*A$1.00 = ¥105. The transaction value may increase by a maximum of A$100 million (approximately ¥10.5 billion ) subject to National Foods' FY2007 performance.
Through the investment, Kirin will obtain a robust growth platform for businesses in the area of "food and health," which helps to reinforce the foundations for a quantum leap in growth as well as boost the Group's presence in Asia and Oceania.
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 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.
National Foods is a leading Australian manufacturer of dairy products and beverages with high growth potential and profitability from a strong branded product portfolio with over 100 years of history, manufactured from 24 production sites. Amongst its key brands are; "Pura Milk," a leading milk brand; "Yoplait" (under license in Australia), a world-leading yogurt brand and; "Berri," a leading juice brand. National Foods' operational diversification has been accelerated in recent years with the acquisition of the No.1 Australian juice company Berri in 2005 and specialty cheese producer Lactos in 2006. National Foods has also leveraged its strong operational platform in Australia internationally, expanding its business into New Zealand, Malaysia and Indonesia, establishing production facilities in each country. Post acquisition, National Foods will continue to pursue business expansion opportunities in Asia and Oceania, in alignment with target geographies set out in KV2015. Further, Kirin will assist in the future growth of National Foods by applying its technological, research and marketing expertise to National Foods' product portfolio.
Kirin Group aims to further increase its corporate value through a quantum leap in growth and creation of 'Group premium' targeted in KV2015. Kirin will always stay close to its customer and continues to promote the joys of 'food and health' under the Group slogan, 'Tastes that make you smile.'
