Silk to acquire Eden Laser Clinics

Silk acquire Eden Laser
The Eden Laser Clinics network boosts Silk’s NSW presence. (Source: eden-laser-clinics-penrith)

Silk Laser Clinics will acquire the Eden Laser Clinics network of 10 outlets. There is an estimated acquisition price, on a cash free debt free basis, of $8.4 million.

Eden Laser Clinics operates nine cosmetic clinics across New South Wales and one in Australian Capital Territory. Nine of the clinics are corporate-owned.

The business offers laser hair removal, skin treatments, tattoo removal, body sculpting, and injectable treatments.

Eden Clinic business has strong synergies

The 11-year old business has a client database of more than 130,000 people and many of Eden’s clinics are in key Sydney locations. The acquisition substantially increases exposure in Penrith, Liverpool, Bankstown, Eastgardens and Hornsby. It also bolsters network numbers to over 30 in NSW/ACT.

Silk will have a total of 141 clinics across Australia and New Zealand after the acquisition.

Martin Perelman, Silk founder and CEO, said when the announcement was made in late December 2022, “The proposed acquisition of Eden Laser Clinics is an exciting opportunity for Silk to grow in the key state of New South Wales.

Silk Laser’s acquisition of Eden will boost its market position

“It delivers on our growth strategy of increasing network scale, while also being earnings accretive pre-synergies. Eden Laser Clinics is closely aligned to our existing service offering and provides upside through increasing the sale of injectables to their clients and via procurement and systems initiatives.

“The acquisition cements Silk’s position as a leading player in New South Wales/ACT and across Australia.”

Silk expects Eden Laser Clinics to generate Cash EBITDA (pre-synergies) of $1.4m. Existing debt facilities and internal cash resources will fund consideration and transaction costs. The acquisition should be completed in March 2023.

Last year Silk recorded a 91 per cent increase in network cash sales for the nine months ending March 2022. It also became the first health and beauty brand to gain a 5* rating with the Australian Franchise Rating Scale.