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SILK Laser Australia (ASX:SLA) - Co Founder & CEO, Martin Perelman - The Market Herald
Co Founder & CEO, Martin Perelman
Source: The Advertiser
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  • SILK Laser Australia (SLA) enters a binding agreement to acquire 100 per cent of Beauty Services Holdings (ASC Group) for $52 million
  • ASC Group is a leading provider of non-surgical aesthetic products and services, operating 56 clinics across Australia and New Zealand
  • Upon completion, the acquisition will solidify SILK's position as the number two player in the Australian non-surgical aesthetic industry
  • The acquisition will consist of $22.5 million from a new established debt facility, a $20 million placement and $7.5 million existing cash
  • SILK will remain in a trading halt until the placement is completed with shares last trading at $4.53 on June 17

SILK Laser Australia (SLA) has entered a binding agreement to acquire 100 per cent of Beauty Services Holdings (ASC Group) for $52 million.

ASC Group is a leading provider of non-surgical aesthetic products and services, operating 56 clinics across Australia and New Zealand.

It operates Australian Skin Clinics in Australia and The Cosmetic Clinic in New Zealand.

This acquisition will provide SILK with entry into the Victorian, Brisbane and New Zealand markets.

Upon completion, the acquisition will solidify SILK's position as the number two player in the Australian non-surgical aesthetic industry.

The acquisition will consist of $22.5 million from a new established debt facility, a $20 million placement and $7.5 million existing cash.

Up to an additional $5 million earn-out is payable based on the opening of certain new clinics.

To raise the $20 million, SILK has today launched a fully-underwritten placement which will see roughly 4.7 million shares to institutional investors at $4.30.

This price represents a 5.1 per cent discount to SILK's close of $4.53 on June 17 and a 1.8 per cent discount to the five-day volume-weighted average price.

Shares are expected to settle on June 23 and be allocated on June 24.

"We are excited to welcome Australian Skin Clinics and The Cosmetic Clinic to the SILK family. Together, we will be one of the leading chains in the Australian market, giving our clients more choice, more innovation and most importantly, better service and results," CEO and Co-Founder Martin Perelman said.

"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."

SILK will remain in a trading halt until the placement is completed with shares last trading at $4.53 on June 17.

SLA by the numbers
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