Blackmores to be acquired by Japan's Kirin for $1.9b

The bid, which values Blackmores' equity at $1.88 billion, has the endorsement of Blackmore's board and its largest shareholder, Marcus Blackmore, whose father Maurice established the vitamins firm in 1932.

Mr Blackmore said Kirin would be a strong "brand custodian" for Blackmores and it was committed to research, development and international growth for the brand.

"I believe this presents the next evolution of the business my father founded 90 years ago," he said.

Blackmores chief executive and managing director Alastair Symington said the bid recognised Blackmores' strong leadership position in the natural health sector across the Asia Pacific region.

"The combination of Kirin and Blackmores is testament to the clarity and ambition of our collective strategic direction and is recognition of the significant effort and capital invested at Blackmores over the past three years in repositioning the business for sustainable profitable growth,'' he said.

The acquisition will need the formal approval of shareholders and clearance from the Australian consumer watchdog and the Foreign Investment Review Board. The parties hope to complete the deal by early August.

In addition to its global beer business, which includes Australian brands XXXX, Hahn and Tooheys, Kirin operates a growing line of supplements, pharmaceuticals and skin care products.

"We believe Blackmores will accelerate the transformation of our Health Science Domain as both Kirin and Blackmores share a vision to improve people's lives through our products as well as a commitment to quality, innovation and investment," said Takeshi Minakata, president of Kirin's health science business.

The Tokyo Stock Exchange-listed company has a market capitalisation of $22.9 billion and is funding the acquisition through existing cash and debt facilities.

At 11.22am AEST, Blackmore shares were up 21.6 per cent to $93.37.