Japanese beer giant Kirin Holdings has struck a near $2 billion deal to takeover Australian vitamin business Blackmores.

Blackmores’ shares spiked more than 20 per cent after confirmation of the Kirin takeover plan on Thursday.

Kirin Holdings announced it had entered into an agreement with ASX-listed Blackmores to buy out the company for a total cash consideration of $95 per share.

The bid would value the company at $1.88 billion, a near-25 per cent premium on its previous closing price.

The bid has the unanimous backing of the Blackmores board, including the company’s largest shareholder Marcus Blackmore. He holds 18 per cent of shares in the vitamin and natural health company.

Mr Blackmore’s father Maurice established the business 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.

The acquisition will need the formal approval of shareholders and clearance from the Australian consumer watchdog and the Foreign Investment Review Board.

In addition to its global beer business, which includes Australian brands XXXX, Hahn and Tooheys, Kirin also operates growing pharmaceuticals and health care operations.

Kirin, which is listed on the Tokyo Stock Exchange, has been expanding into pharmaceuticals. If its Blackmores bid is successful, the vitamin maker would be its first sizeable play in the industry.

Shareholders will be asked to vote on the deal at a meeting in July. If it is approved, Blackmores will be delisted from the ASX in early August.

-with AAP