Friday, December 9, 2022

Clicks acquires the rest of Sorbet in R105m deal


JSE-listed retail-led healthcare group Clicks has acquired the rest of the shareholding it doesn’t already personal in Sorbet Holdings, for R105 million from Outdated Mutual Non-public Fairness, giving the retailer its first style at proudly owning a franchise chain.

Clicks Group has owned a 25% stake in Sorbet Manufacturers – which holds the Sorbet mental property – since 2015 and can now maintain 100% of Sorbet group entities, it introduced on Thursday.

The wonder salon franchise chain has over 190 retailers unfold out throughout the nation, working beneath the Sorbet (all-round magnificence remedy), Sorbet Man (males’s grooming) and Candi & Co (ethnic hair, remedies and hairstyling) manufacturers.

In a press release Clicks CEO Bertina Engelbrecht mentioned the Sorbet acquisition is smart as the model – which the retailer has already been stocking in its shops for a quantity of years – presents a pure strategic match and aligns with the group’s well being, magnificence and wellness providing.

“Sorbet is a extremely trusted model, with a loyal and rising buyer base, and we goal to capitalise on the alternatives to increase our presence collectively and speed up income development.”

“Since buying our shareholding in Sorbet Manufacturers now we have labored intently with the administration group over the previous seven years and developed a shared imaginative and prescient for the enterprise,” Engelbrecht mentioned.

“Sorbet has a powerful and entrepreneurial administration group, and we consider the enterprise will complement the providing of our chain of over 850 Clicks shops nationwide,” she provides.

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Sale was imminent

Outdated Mutual Non-public Fairness co-head Jacci Myburgh mentioned the sale of its holding in Sorbet has been half of the plan since the entity first acquired the magnificence salon franchise, as half of its buy of the Long4Life Group.

Long4Life Group efficiently concluded its delisting from the JSE earlier this 12 months, with the administration price of holding an inventory on the change and never having the ability to appeal to sufficient investor curiosity pushing it to hitch the Outdated Mutual arm.

“As Sorbet is beneath the dimension of funding that we might usually maintain, our intent was all the time to promote the enterprise to an applicable proprietor,” Myburgh mentioned.

“Clicks is a really logical proprietor of Sorbet, provided that it’s an present three way partnership stakeholder in the Sorbet model.”

“We’re extraordinarily happy to have left the enterprise in the proper palms whereas securing an excellent exit for our traders,” Myburgh provides.

Learn: Another flurry of delistings hits JSE

CEO of Sorbet Group Linda Sinclair says the firm seems to be ahead to strolling its subsequent chapter with Clicks and hopes the partnership will ship development for the Sorbet enterprise.

“Clicks has performed an instrumental position in supporting the development of Sorbet into changing into the main skilled magnificence and grooming franchise model in South Africa. Constructed on a tradition of placing folks first, our values are strongly aligned with Clicks and we stay up for delivering on future development alternatives as half of the Clicks Group,” Sinclair mentioned.

 

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