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South Africa’s New Clicks to sell Aussy unit

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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