Clicks Group’s Sorbet Holdings Acquisition: Competition Tribunal Approval Sets Stage for Beauty Industry Expansion

• Clicks Group Limited has received approval from the Competition Tribunal for its acquisition of Sorbet Holdings, the owner of the Sorbet beauty salon franchise chain.
• The acquisition, valued at R105 million, is now unconditional, allowing Clicks Group to assume full ownership of all Sorbet group entities.
• The Competition Tribunal’s approval includes conditions related to advancing black ownership, increasing local manufacturing, and enhancing staff training within the Sorbet franchise salons.

Clicks Group Limited secured approval from the Competition Tribunal for its proposed acquisition of Sorbet Holdings, the owner of the popular Sorbet beauty salon franchise chain. The acquisition, valued at R105 million, marks a significant milestone for Clicks Group as it aims to further expand its presence in the beauty industry.

The Competition Tribunal’s decision, announced on 1st June 2023, greenlights the transaction subject to specific conditions. These conditions focus on advancing black ownership of Sorbet franchise salons, boosting local manufacturing of Sorbet branded products, and enhancing the training of Sorbet staff. By prioritizing these measures, the tribunal aims to foster small, independent business ownership and promote economic growth within the beauty sector.

With the transaction now declared unconditional, Clicks Group will assume full control over all Sorbet group entities, including Sorbet Brands, in which Clicks Group previously held a 25% investment since 2015. This consolidation empowers Clicks Group to streamline operations and align strategic objectives with the esteemed beauty brand.

Bertina Engelbrecht, Chief Executive Officer of Clicks Group, expressed her excitement about the acquisition, emphasizing the strategic fit between Clicks Group’s established health and beauty strategy and Sorbet’s brand positioning. Engelbrecht stated, “Sorbet perfectly complements our portfolio, and we are eager to leverage synergies and pursue growth opportunities alongside Sorbet’s accomplished management team. With a growing customer base and high brand trust, we are committed to preserving the successful Sorbet franchise model and supporting the growth and empowerment of small, independent business owners.”

Linda Sinclair, CEO of the Sorbet Group, acknowledged the longstanding partnership between Sorbet and Clicks Group, which spans over 12 years. Sinclair conveyed optimism about the future collaboration, saying, “Clicks Group, together with our franchise partners, has played a pivotal role in driving Sorbet’s ascent as a leading professional beauty and grooming franchise brand in South Africa. By joining forces, we can harness our collective expertise to accelerate our growth strategy as part of Clicks Group.”