API completes first stage of Clearskincare Clinics acquisition
Australian Pharmaceuticals Industries Limited (API) announced it has completed the first stage of its $127.4 million acquisition of Clearskincare Clinics.
API now has a controlling interest in the clinics, at 50.1 per cent, and 100 per cent off the skincare product business. This was funded through a new medium term facility of $65 million.
The acquisition will occur between 2018 and 2021, with API paying a further $32.9 million to assume full ownership of the clinics in 2020, and an additional capped cash consideration payment of up to $20 million payable under certain performance hurdles being met in 2020 and 2021.
The balance of the transaction will be determined by API in 2020 and 2021.
“The acquisition is highly compelling and complementary,” API said in a press release.
“It delivers API shareholders the next stage of API’s development strategy through having a more diversified business with accelerated growth potential due to accessing an early stage, rapidly growing market with professional healthcare services.”
CEO and managing director Richard Vincent said, “we’re already well progressed with plans to integrate and build the Clearskincare Clinics business which we are confident will add more value for customers and our shareholders.”
Clearskincare Clinics founder and clinical director Dr Philippa McCaffery and business partner Alarna Longes confirmed they would continue running the business under API’s leadership in June.
“Together we can take the Clearskincare Clinics experience to more customers across Australia and the skills of both businesses will really deliver on our growth potential,” McCaffery said.
Clearskincare Clinics will join brands such as Priceline, Priceline Pharmacy, Soul Pattinson Chemist, Pharmacist Advice, Club Premium and Pharmacy Best Buys under the API umbrella.
Clearskincare Clinics is a leading provider of non-invasive aesthetic services, focusing on specialty skin care, anti-ageing and acne treatments, a market in Australia that is among the highest in the world as a result of the relatively harsh climate.
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