Australian information technology and electronics retailer Vita Group Ltd. said Oct. 18 that it has entered into a conditional agreement to buy Clear Complexions for A$9.5 million, in cash and stock.
Clear Complexions runs a network of six skincare clinics in Sydney and Canberra staffed by a team of medically trained skincare professionals, Vita said. With this deal, Vita said it would enter the Australian noninvasive medical aesthetics market, encompassing treatments such as anti-wrinkle injectables, chemical facial peels, body sculpting and tattoo removal. Vita noted that the category is seeing double-digit annual growth and that the market is worth A$1 billion a year.
Vita will pay Clear Complexions A$8.5 million in cash and A$1 million in Vita Group shares. Clear Complexions is also eligible for an option to obtain a 5% interest in Vita's new medical aesthetics business and has the potential to receive earnouts if the new business exceeds earnings targets over the next two years, Vita said.
Vita said it expects the new business to generate annual revenue of about A$10 million and EBITDA of over A$1 million in the year following the acquisition.
Vita said the deal is forecast to close, subject to usual conditions, in late October or early November.