Wesfarmers’ API offers $167m for Silk Laser Clinics

Wesfarmers API Silk Laser
Silk Laser Clinics’ board is expected to accept the bid. (Source: Silk Laser Clinics Perth)

Wesfarmers’ wholly-owned subsidiary Australian Pharmaceutical Industries (API) has made a $167 million non-binding indicative and conditional offer to acquire specialist skincare clinic chain Silk Laser Clinics.

Under the deal, Silk’s shareholders will receive $3.15 per share indicating a premium of 30.2 per cent to the closing price yesterday, of $2.42 per share.

API has 30 days for exclusive due diligence and negotiations on the binding agreement.

If API bid is successful, Silk Laser Clinics joins Priceline at pharma firm

The pharmaceutical group, which is the parent company of Priceline, has only been in Wesfarmers’ portfolio since last year. The Australian Competition and Consumer Commission gave the green light for the acquisition of API. The pharma firm had previously rejected a $687m bid.

Silk founder and MD, Martin Perelman, said the board believes it is in the “best interests of shareholders to engage with API”.

Wilson Asset Management Group owns a 9.3 per cent shareholding in Silk. The group is expected to vote in favour of the proposed takeover.

Silk Laser Clinics set for growth

Silk Laser Clinics offers a range of non-surgical aesthetic products and services. These include cosmetic injectables, laser hair removal, skin treatments and body contouring.

In January this year Silk revealed it would acquire the 10-clinic Eden Laser Clinics business for $8.4m. A year ago Silk became the first health and beauty brand to receive a 5-star franchise rating.

Last week, Wesfarmers sold all of its remaining shares in the supermarket chain, Coles Group, which it spun off in 2018.