If approved by the Competition Commision, the transaction will result in Clicks holding 100% of all Sorbet group entities, including Sorbet brands, which Clicks has had a 25% stake in since 2015. Old Mutual Private Equity currently owns Sorbet, having acquired the business as part of the previously listed Long4Life group.

Bertina Engelbrecht, chief executive officer of Clicks Group, says Sorbet is a natural strategic fit and is closely aligned with Clicks’ health, beauty and wellness offerings. 

“Sorbet is a highly trusted brand with a loyal and growing customer base, and we aim to capitalise on the opportunities to expand our presence together and accelerate revenue growth,” she says.

Sorbet products are already available for sale in Clicks stores and Engelbrecht notes that this is Clicks’ “first foray” into owning a franchise chain, implying that the group might consider other opportunities in the franchise sector.

Clicks Group CEO Bertina Engelbrecht. (Photo: Supplied)

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Sorbet group’s chief executive, Linda Sinclair, will report to Engelbrecht and all Sorbet employees will be transferred to the Clicks group.

Jacci Myburgh, co-head of Old Mutual Private Equity (OMPE), says because Sorbet is below the size of investment that OMPE would typically hold, the intention was always to sell the business to an appropriate owner. 

“Clicks is a logical owner of Sorbet, given that it is an existing joint venture stakeholder in the Sorbet brand.”

The effective date of acquisition will be the first day of the month following approval by the competition authorities. 

For the year to August, Clicks generated cash inflows from operations of R4.3-billion, and posted a 6% jump in turnover to R39.6-billion. 

The group has a record capital investment of R936-million planned for the current financial year, including R477-million for new stores and pharmacies and the refurbishment of 60 stores. 

Another R459-million will be invested in supply chain, technology and infrastructure. BM/DM