A Wesfarmers subsidiary has agreed to buy an Adelaide-based chain of laser skincare clinics for $180 million, a move that will supplement an existing line of skincare clinics and pharmacies.
Wesfarmers' Australian Pharmaceutical Industries said on Monday it would pay $3.35 per share to acquire ASX-listed SILK Laser Australia, a 38 per cent premium to its share price before April 19, when news of the takeover talks were first announced.
SILK Laser's board opted for the Wesfarmers bid after it raised its offer from $169m, following a competing $179m offer from Hong Kong-based EC Healthcare.
SILK operates 142 clinics that offer laser hair removal, cosmetic injectables and skin treatment offerings.
Wesfarmers Health managing director Emily Amos said the acquisition would provide SILK franchisees and business owners with the benefits associated with being part of a broader healthcare, wellness and beauty network.
Acquired by Wesfarmers last year for $774m, Australian Pharmaceutical Industries owns chemists under the Priceline, Soul Pattinson and Pharmacists Advice brands as well as the Clearskincare Clinics chain of cosmetic, skin and laser hair removal clinics.
SILK shareholders will be asked to approve the takeover in October.
It is also subject to approval from the Australian and New Zealand competition regulators.
At 1.53pm AEST, Wesfarmers shares were up 0.9 per cent to $48.51 and SILK shares were up 17.4 per cent to $3.31.