By Zuko Komisa
Clicks has announced that it is buying Sorbet beauty salon’s holding company for R105m.
The largest pharmacy in South Africa, Clicks, has stated that it intends to purchase Sorbet Holdings in its whole for R105 million, adding a franchise network to the JSE-listed company.
The purchase would be the pharmacist’s first franchise network and would add more than 190 salons to its more than 850 SA shops.
Although Clicks already owns 25% of Sorbet Brands, the company in charge of the group’s intellectual property, controlling the holding structure will give it complete control over all businesses, including the salons that go by the names of Sorbet, Sorbet Man, and Candi & Co.
Old Mutual Private Equity, which purchased Sorbet earlier in 2022 as a component of the previously mentioned Long4Life group, is selling the company to Clicks.
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According to Daily Maverick, for the year ending in August, Clicks reported R4.3 billion in cash inflows from operations and a 6% increase in revenue to R39.6 billion.
For the current financial year, the business has budgeted a record capital investment of R936 million, including R477 million for new stores and pharmacies and the rehabilitation of 60 locations.
Infrastructure, technology, and the supply chain will each receive an additional R459 million.
Sorbet has a natural strategic fit and is tightly integrated with Clicks’ beauty and wellness offering, according to CEO Bertina Engelbrecht.
“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.
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