Australian Pharmaceutical Industries (API) has entered into binding agreements to acquire the assets of cosmetic skin and laser hair removal specialists Clearskincare Clinics for a total cash consideration of $127.4 million, creating a leading Australian health and beauty products and services business.
Under the terms of the agreements, an additional capped cash consideration payment of up to $20 million may be payable subject to certain performance hurdles being met in 2020 and 2021.
The acquisition 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.
API said that it expects to build scale and profitability because of its operational capabilities in franchising, network development, and consumer products management and also expect significant opportunities to increase the Clearskincare Clinics’ network size.