The Clicks Group, a health and beauty retail giant plans to acquire Sorbet Holding, the parent company of Sorbet beauty salons for R105 million cash.
Clicks Group wants to take total ownership of Sorbet chain salons, so far it has owned a 25% stake in Sorbet Brands. Sorbet products are currently sold in Sorbet salons and Clicks stores.
“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,” said Bertina Engelbrecht, chief executive officer of Clicks Group.
She believes that Sorbet has a natural strategic fit and is closely aligned with Clicks Group’s health, beauty and wellness offering.
“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,” she said.
According to Linda Sinclair, CEO of the Sorbet Group, “Clicks has played an instrumental role in supporting the growth of Sorbet into becoming the leading professional beauty and grooming franchise brand in South Africa. Built on a culture of putting people first, our values are strongly aligned with Clicks and we look forward to delivering on future growth opportunities as part of the Clicks Group.”
Jacci Myburgh, co-head of Old Mutual Private Equity, said Sorbet was acquired as part of the Long4Life delisting concluded earlier this year.
“As Sorbet is below the size of investment that we would typically hold our intent was always to sell the business to an appropriate owner. Clicks is a very logical owner of Sorbet given that it is an existing joint venture stakeholder in the Sorbet brand. We are extremely pleased to have left the business in the right hands while securing a good exit for our investors.”
The transaction is subject to approval by competition authorities.
