Tuesday, 7 March 2023
by Berkeley Lovelace
Specialist clinic network company SILK Laser Australia (ASX:SLA) has completed the acquisition of Eden Laser Clinics in order to penetrate the Sydney market.
The company says this acquisition represents the expansion of its footprint into the under penetrated Sydney market, and means SILK is now the second largest laser hair removal, skin treatments, and tattoo removal companies by clinic numbers across New South Wales (NSW) and the Australian Capital Territory (ACT).
SILK notes this acquisition adds Eden’s 10 cosmetic clinics situated across NSW (9) and the ACT (1) to its portfolio and with this addition brings SILKS total clinics within Australia and New Zealand to 142.
“We’re delighted to welcome Eden Laser Clinics team to SILK and excited by the opportunity for SILK to grow in the key state of New South Wales”
The company also notes the acquisition comes following the delivery of another half of revenue and earnings growth, in which network cash sales reported an increase of 35% to $102.8 million, as well as a reported revenue increase of 21% to $49 million.
Other achievements recorded by the company include a ‘strong’ balance sheet with cash of $19.4 million and a net debt of $3 million, which supports growth initiatives and consideration of capital management strategies.
Speaking on the acquisition, SILK Laser Australia Founder and Chief Executive Officer (CEO) Martin Perelman said: “We’re delighted to welcome Eden Laser Clinics team to SILK and excited by the opportunity for SILK to grow in the key state of New South Wales. Not only does this acquisition further deliver on our growth strategy of increasing network scale, it cements our position as a leading provider, importantly it is also earning accretive pre-synergies.”
SILK Laser Australia is an ASX-listed company founded in 2009 which represents one of Australia’s largest specialist clinic networks, offering a range of non-surgical aesthetic products and services. The company offers 5 core offerings comprising laser hair removal, cosmetic injectables, skin treatments, body contouring, and skin products.
SILK listed on the ASX in 2020 and has teams across Australia and New Zealand within its 142 clinics. The company is currently committed to combining advanced technology, education, and gold standard service.