Silk Laser Clinics is set to buy Australian Skin Clinics (ASC) and The Cosmetic Clinic in New Zealand, bringing it closer to its expansion plan of 150 stores.
The acquisition is estimated to be worth $52 million, including $47 million upfront cash consideration and an additional $5 million earn-out in script.
The acquisition, expected to be completed by the end of this August, will see the addition of 56 clinics to Silk’s existing network of 61 clinics.
“ASC Group is well aligned to our existing service offering and complements our existing network, whilst providing scaled entry into the Victorian and New Zealand markets,” said Martin Perelman, co-founder and CEO of Silk.
To partially fund the deal, Silk has launched $20 million equity raising.
“The acquisition solidifies our market leadership as a major player in Australia with 103 clinics and entry into New Zealand with 14 clinics. This increased scale provides opportunity for further value creation through synergies and further investment in our brand and customer experience.”