Clearskincare Clinics set to franchise

Nick Hall

Australian Pharmaceutical Industries Limited (API) has unveiled plans to franchise hair-removal and cosmetic injection business, Clearskincare Clinics, following its $127.4 million acquisition of the company.

The acquisition, announced this week, saw the purchase of Clearskincare’s 44 clinics across Australia, further consolidating the already top-heavy aesthetic skin-care market.

Clearskincare Clinics is a leading provider of non-invasive aesthetic services, focusing on specialty skin care, anti-ageing and acne treatments, a market in Australia that is among the highest in the world as a result of the relatively harsh climate.

In recent times, franchising within the sector has seen a significant rise in interest, with API’s decision to franchise Clearskincare Clinics following in the footsteps of large industry competitor Laser Clinics Australia.

Last year, private equity giant KKR purchased Laser Clinics Australia’s 70-plus locations for over $600 million, before turning their focus to solidifying the franchise model.

Richard Vincent, API managing director and CEO believes the Clearskincare Clinics acquisition comes at time when the sector is experiencing steady growth.

“Clearskincare Clinics is a disciplined, high-quality operation with a strong track record of profitable growth that fits with our proven complementary skill base,” Vincent said.

“The acquisition fulfils our criteria for aligning with a robust business in a burgeoning sector of the health and beauty market, that is services-based and away from government funding, and to which we can add further value for customers, clinic teams and shareholders.”

Vincent also credited the founders of the business for its success, praising their continued support.

“The strong market position Clearskincare Clinics currently enjoys is testament to the excellent work of management to date and I am delighted the two founders have agreed to continue their work under API’s ownership.”

Clearskincare Clinics founder and clinical director Dr Philippa McCaffery confirmed both she and business partner Alarna Longes were excited to work under API’s leadership.

“Together we can take the Clearskincare Clinics experience to more customers across Australia and the skills of both businesses will really deliver on our growth potential,” said McCaffery.

The acquisition will begin with API controlling 50.1 per cent of controlling interest in the clinics, and steadily increasing to 100 per cent by the end of September 2021, with the $127.4 million paid in instalments over three years.

As part of the acquisition, Clearskincare Clinics joins brands such as Priceline & Priceline Pharmacy, Soul Pattinson Chemist, Pharmacist Advice, Club Premium and Pharmacy Best Buys under the API umbrella.