Clicks wants to buy Sorbet for R105 million in cash

Clicks, South Africa’s largest pharmacist, says it wants to buy out salon owner Sorbet for R105 million, adding a franchise chain to the JSE-listed group.

In 2015, Clicks purchased a 25% stake in Sorbet Holdings, which operates under the brands Sorbet, Sorbet Man, and Candi & Co.

The purchase would add over 190 salons to the pharmacist’s more than 850 SA locations, and it would be the company’s first acquisition of a franchise chain.

Sorbet is being acquired by Clicks from Old Mutual Private Equity, which acquired the company earlier in 2022 as part of the previously listed Long4Life group. Ian Fuhr founded Sorbet in 2005.

“Sorbet has a natural strategic fit and is closely aligned with Clicks Group’s health, beauty, and wellness offering,” Clicks CEO Bertina Engelbrecht said in a statement on Thursday.
“Sorbet is a highly trusted brand with a loyal and growing customer base, and we aim to capitalise on the opportunities to expand our presence together and accelerate revenue growth.”
Sorbet products are currently sold in Sorbet salons and Clicks stores, and the transaction ensures that these products will continue to be sold in Clicks stores in perpetuity, according to the pharmacist.

“This is our first foray into owning a franchise chain. However, Clicks Group supports the growth and empowerment of small, independent business ownership and we are committed to retaining the highly successful Sorbet franchise model,” said Engelbrecht.

The Sorbet Group will remain in Johannesburg, and its CEO, Linda Sinclair, will report to the CEO of the Clicks Group. All employees of Sorbet will be transferred to the Clicks Group.

Old Mutual Private Equity co-head Jacci Myburgh stated, “We acquired Sorbet as part of the Long4Life delisting. As Sorbet is below the size of investment that we would typically hold, our intent was always to sell the business to an appropriate owner. Clicks is a logical owner of Sorbet given that it is an existing joint venture stakeholder in the Sorbet brand.”
Linda Sinclair, CEO of Sorbet, said, “Sorbet has walked a successful road with Clicks since becoming an affinity partner in 2011 and then Clicks Group investing in Sorbet Brands in 2015.”
“Clicks has played an instrumental role in supporting the growth of Sorbet into becoming a leading professional beauty and grooming franchise brand. Our values are strongly aligned with Clicks and we look forward to delivering on future growth opportunities as part of the Clicks Group.”

The proposed transaction is subject to competition authorities’ approval.

The pharmacy group’s shares were up 0.5% to R294.92 in midday trade on Thursday, valuing the company at around R72 billion. Clicks have dropped by more than 7% so far in 2022.