South Africa's New Clicks to sell Aussy unit

JOHANNESBURG - South African health and beauty product retailer New Clicks said on Monday it had agreed to sell its Australian unit to a group of private equity funds for A$107 million (N$500 million).

The decision paves the way for New Clicks to refocus on its core

business and expand into South Africa's pharmacy sector.

"The board has taken a decision that it cannot afford to lose

focus and commit resources to addressing the challenges in the

Australian market at the expense of the local growth strategy," New

Clicks said in a statement.

 

New Clicks Australia (NCA) operates over 300 stores under the

brand names Priceline, Priceline Pharmacy, Price Attack and

House.

 

The South African parent said the Australian operation would

require a large capital injection to grow either by acquisition or

through a strategic alliance with a pharmaceutical distributor.

 

The consortium of buyers is grouped under a company called

Synapse Holdings and comprises ABN Amro Capital (Belgium) NV,

Investec Wentworth Private Equity Nominees Pty Limited and Castle

Harlan Australian Mezzanine Partners.

 

- Reuters

 

"The board has taken a decision that it cannot afford to lose focus

and commit resources to addressing the challenges in the Australian

market at the expense of the local growth strategy," New Clicks

said in a statement. New Clicks Australia (NCA) operates over 300

stores under the brand names Priceline, Priceline Pharmacy, Price

Attack and House. The South African parent said the Australian

operation would require a large capital injection to grow either by

acquisition or through a strategic alliance with a pharmaceutical

distributor. The consortium of buyers is grouped under a company

called Synapse Holdings and comprises ABN Amro Capital (Belgium)

NV, Investec Wentworth Private Equity Nominees Pty Limited and

Castle Harlan Australian Mezzanine Partners. - Reuters

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