Investment holding company, Long4Life has concluded a share purchase agreement, subject to certain conditions precedent, for the acquisition of the Sorbet Group. Sorbet comprises health, beauty and grooming outlets situated across South Africa and with an emerging footprint in the UK.
The acquisition, which was first announced in Long4Life’s Pre-Listing Statement of 31 March 2017, has been concluded for the entire issued share capital of Sorbet for a maximum consideration of R116 million, to be settled through a combination of cash and Long4Life shares. The effective date of the acquisition is 1 April 2017.
Building a health and beauty conglomerate
Long4Life chief executive, Brian Joffe, comments: ‘It has been our stated intention to pursue investments predominantly with a lifestyle focus and Sorbet certainly fits neatly into our criteria. It is a company that has attractive growth prospects and has many of the characteristics we consider in our investment decision making. I am pleased that Sorbet’s founder, Ian Fuhr, and his management have agreed to remain with the company and work closely with the Long4Life team to deliver Sorbet’s next phase of growth and development.’
Fuhr adds: ‘We are excited about joining Long4Life and the opportunity to work alongside and under the guidance and experience of industry giants, Brian Joffe and Kevin Hedderwick. We look forward to building Sorbet into a significant health and beauty conglomerate. With the financial backing of Long4Life we will now be able to make acquisitions of other businesses in the sector, while also continuing to launch new formats of the Sorbet brand.’
A look at Sorbet’s history
Sorbet’s first store opened in 2005 and has grown to 186 franchised salons in South Africa. The health and beauty brand recently extended its reach into male grooming, ethnic hair and has established a strong retail brand through its relationship with the Clicks group.
‘We will continue to cultivate the “Soul of Sorbet” corporate culture within Long4Life, as we believe it is one of our key competitive advantages and the driving force behind our success to date,’ concludes Fuhr.
