The Clicks Group has announced the acquisition of beauty company, Sorbet, for a cash consideration of R105 million.
The Sorbet Group is a beauty salon franchise chain of over 190 outlets across South Africa, operating various store formats under the Sorbet (all-round beauty therapy), Sorbet Man (men’s grooming) and Candi & Co (ethnic hair, treatments and hairstyling) brands.
The transaction will result in the Clicks Group holding 100% of the issued share capital of all Sorbet group entities. This includes Sorbet Brands in which the Clicks Group has held a 25% investment since 2015.
Sorbet Brands holds the Sorbet intellectual property.
Clicks Group is acquiring Sorbet from Old Mutual Private Equity, which acquired the business as part of the previously listed Long4Life group. Sorbet was founded by Ian Fuhr in 2005.
Bertina Engelbrecht, chief executive officer of Clicks Group, said: “Sorbet has a natural strategic fit and is closely aligned with Clicks Group’s health, beauty and wellness offering. Sorbet is a highly trusted brand with a loyal and growing customer base, and we aim to capitalise on the opportunities to expand our presence together and accelerate revenue growth.”
“Since acquiring our shareholding in Sorbet Brands, we have worked closely with the management team over the past seven years and developed a shared vision for the business. Sorbet has a strong and entrepreneurial management team, and we believe the business will complement the offering of our chain of over 850 Clicks stores nationwide.”
Sorbet products are currently sold in Sorbet salons and Clicks stores, and the transaction will ensure that these products will be sold in the Clicks Group in perpetuity.
“This is our first foray into owning a franchise chain. However, Clicks Group supports the growth and empowerment of small, independent business ownership and we are committed to retaining the highly successful Sorbet franchise model. We welcome the Sorbet employees and franchise partners into our group and look forward to a mutually beneficial, value-accretive relationship.”
The Sorbet Group will remain located in Johannesburg and the CEO, Linda Sinclair, will report to the Clicks Group CEO. All Sorbet employees will be transferred to the Clicks Group.
The proposed transaction is subject to approval by competition authorities. The effective date of acquisition is expected to be the first day of the month following the approval by
the competition authorities.-bustech
