Botox injections and beauty treatments group Silk Laser is stepping up its expansion on the eastern seaboard with the acquisition of Victorian group Unique Laser, which runs five outlets.
Silk Laser chief executive Martin Perelman said the entire industry is going through a consolidation phase with his company on the front foot.
“This acquisition aligns with Silk’s goal to increase its East Coast presence, particularly in Victoria,” he said.
But while Silk is pushing hard on a bigger is better approach, investors are feeling the pain from a share price which is substantially below that of its public float in December 2020.
Silk raised $83.5 million in an initial public offer that was priced at $3.45 per share. The stock reached a high of $4.91 in October last year, but is now languishing around the $2.20 mark.
Unique Laser was established in 2013 and operates from five sites in Melbourne and regional Victoria. Two of them are in Westfield shopping centres in the Melbourne suburb of Doncaster, and in the regional city of Geelong. The other outlets are in Ballarat, Torquay and Waurn Ponds.
The company didn’t disclose the purchase price.
Mr Perelman said the Unique Laser deal expanded Silk’s network to 128 outlets.
Silk had 53 outlets when it listed on the ASX in late 2020. The group has its largest presence in South Australia and Western Australia and has been making a concerted push into the eastern states.
It has also been building its business in New Zealand, through the $52 million acquisition of Australian Skin Clinics, and The Cosmetic Clinic last year. That deal delivered 14 outlets in New Zealand.
The Silk business was founded by Mr Perelman in 2009 in the upmarket Adelaide suburb of Hyde Park.
Most of Silk Laser’s customers are women aged between 18 and 49.
The pandemic been a volatile time for the company to manage.
While it benefited from Australians spending more money on personal grooming in a phenomenon known as “Zoom face” it also had to manage lockdowns, trading restrictions and disruptions from staff absenteeism from COVID-19 and flu.
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