AUSTRALIAN Pharmaceutical Industries is conducting due diligence on ASX-listed beauty clinic chain SILK Laser Australia, as part of a $169 million all-cash indicative offer for the 140-outlet business.
The move is being conducted under the Wesfarmers Health banner, of which API is now a key component following its acquisition by the conglomerate just over 12 months ago (PD 31 Mar 2022).
"SILK is one of the largest non-surgical aesthetics clinic operators in Australia and New Zealand, with a network of over 140 clinics," Wesfarmers said yesterday.
"If the Indicative Proposal is successful, SILK will become part of the Wesfarmers Health division, and will complement the division's existing presence in the sector through its ownership and operation of Clear Skincare Clinics," the company noted.
API acquired Clear Skincare about five years ago (PD 25 Jun 2018) as part of a strategy to move into the aesthetics and injectables sector, with the business at the time having 44 clinics along with its in-house exclusive skincare range.
Under the SILK takeover proposal Wesfarmers has been granted a 30 day exclusivity period, with the SILK Board of Directors confirming to API that it intends to unanimously recommend the deal to its shareholders.
The proposal is an all-cash deal worth $3.15 per share, representing a 30% premium to the SILK share price prior to the deal being announced yesterday.
SILK Laser Australia was founded in 2009 in South Australia, and received private equity backing in 2016 prior to listing on the ASX in mid-2020, making a series of competitor acquisitions along the way to grow its footprint on both sides of the Tasman.
The above article was sent to subscribers in Pharmacy Daily's issue from 20 Apr 23
To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 20 Apr 23
