Silk Laser Australia open to Wesfarmers’ $167m takeover proposal

Silk Laser Clinics chief executive Martin Perelman.

Perth-based conglomerate Wesfarmers has launched a $167m buyout proposal for Silk Laser Australia.

The $3.15 per share proposal was announced after the market closed on Wednesday and is being recommended by the target’s board.

It is a 30.2 per cent premium to Silk’s closing price of $2.42 on April 19.

Wesfarmers, which owns Target, Kmart and Officeworks, has been building its own healthcare unit, starting with the acquisition of Priceline pharmacy chain owner API for $763m in March last year.

The offer is through its subsidiary API.

Wilson Asset Management has agreed to vote its 9.3 per cent holding in favour of the Silk proposal.

The offer by way of a scheme of arrangement comes after Wesfarmers received $688m last week by staging a complete exit from supermarket chain Coles Group.

Wesfarmers has been granted 30 days to carry out due diligence on an exclusive basis.

Silk is working with Highbury Partnership and Wilson Corporate Finance and Kain Lawyers.

Silk listed in 2020 with a market value of $162.5m. But like all beauty treatment operations, has been hard hit by the pandemic.

Silk is one of Australia’s largest specialist clinic networks, with 53 clinics across Australia offering a range of non‑surgical aesthetic products and services.

Its core offerings are laser hair removal, cosmetic injectables, skincare services, body contouring and fat reduction services, and owned brand skincare products.

It was co‑founded by its current chief executive, Martin Perelman, in 2009 in Adelaide.