Clicks to buy Sorbet for R105 million
Clicks has announced that it is set to acquire beauty salon franchise chain Sorbet for a cash consideration of R105 million.
Sorbet, founded by Ian Fuhr in 2005, has over 190 outlets across South Africa. It operates various store formats under the Sorbet, Sorbet Man, and Candi & Co brands.
The transaction will result in Clicks 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 is buying Sorbet from Old Mutual Private Equity, who acquired the business as part of the previously listed Long4Life group.
Clicks CEO Bertina Engelbrecht said Sorbet has a natural strategic fit and is closely aligned with their beauty and wellness offering.
“Sorbet is a 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,” she said.
“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 Clicks in perpetuity.
The Sorbet Group will remain located in Johannesburg, and the CEO, Linda Sinclair, will report to the Clicks 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.