JSE-listed retail-led healthcare group Clicks has acquired the remainder of the shareholding it doesn’t already personal in Sorbet Holdings, for R105 million from Previous Mutual Personal 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.
Clicks shares have been up 0.51% to R294.95 by 11:45 on Thursday.
The sweetness salon franchise chain has over 190 shops 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 an announcement Clicks CEO Bertina Engelbrecht stated the Sorbet acquisition is sensible because the model – which the retailer has already been stocking in its shops for various 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 purpose to capitalise on the alternatives to develop our presence collectively and speed up income development.”
“Since buying our shareholding in Sorbet Manufacturers we’ve got labored carefully with the administration group over the previous seven years and developed a shared imaginative and prescient for the enterprise,” Engelbrecht stated.
“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.
Sale was imminent
Previous Mutual Personal Fairness co-head Jacci Myburgh stated the sale of its holding in Sorbet has been a part of the plan for the reason that entity first acquired the sweetness salon franchise, as a part of its buy of the Long4Life Group.
Long4Life Group efficiently concluded its delisting from the JSE earlier this yr, with the administration value of holding an inventory on the trade and never with the ability to appeal to sufficient investor curiosity pushing it to hitch the Previous Mutual arm.
“As Sorbet is beneath the scale of funding that we might sometimes maintain, our intent was at all times to promote the enterprise to an acceptable proprietor,” Myburgh stated.
“Clicks is a really logical proprietor of Sorbet, provided that it’s an present three way partnership stakeholder within the Sorbet model.”
“We’re extraordinarily happy to have left the enterprise in the correct palms whereas securing exit for our traders,” Myburgh provides.
CEO of Sorbet Group Linda Sinclair says the corporate appears ahead to strolling its subsequent chapter with Clicks and hopes the partnership will ship development for the Sorbet enterprise.
“Clicks has performed an instrumental function in supporting the expansion of Sorbet into turning into the main skilled magnificence and grooming franchise model in South Africa. Constructed on a tradition of placing individuals first, our values are strongly aligned with Clicks and we stay up for delivering on future development alternatives as a part of the Clicks Group,” Sinclair stated.
Hear: Clicks CEO Bertina Engelbrecht discusses the group’s annual outcomes