Clicks Group has acquired a controlling stake in luxury beauty retailer ARC store as it looks to tap into a sector valued at more than R6 billion a year.
The retailer has increased its stake in the specialist beauty chain to 61% after acquiring a further 35.3% interest from ARC’s founding shareholders for R507 million.
ARC is a beauty retailer that specialises in skincare, fragrance, makeup and haircare among other things. It currently has 12 stores across South Africa and intends on increasing to between 20 and 30 stores over the medium term.
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Bertina Engelbrecht, Clicks group chief executive, said the acquisition of a controlling stake would give the group greater exposure to the growing premium beauty market.
“ARC has established a differentiated position in the premium beauty market, and we see potential to grow the business and to leverage the strengths of both ARC and Clicks.
“Our increased shareholding gives Clicks greater ability to participate in ARC’s future growth while retaining the founders and management who built the business,” said Engelbrecht.
Clicks and ARC already have an established commercial relationship. ARC has been an affinity partner of the Clicks ClubCard since 2021, while Clicks stores serve as collection points for ARC’s online click-and-collect service.
In the past year, spending at Clicks by ARC customers increased 16% to R836 million.
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Jamie Lane, ARC chief executive, said the business would retain the culture that had underpinned its growth as it entered its next phase.
“ARC’s shareholders and partners recognise that the unique ARC culture, entrepreneurial, customer-focused, innovative and brand-led, is fundamental to achieving its ambitious goals.
“We have crafted a partnership where that culture will remain at the heart of the business as we enter this next phase of growth,” said Lane.
The transaction is still subject to approval by the competition authorities, with the effective date expected to be the first day of the month following approval.
- Clicks Group has increased its stake in luxury beauty retailer ARC to 61% by acquiring an additional 35.3% for R507 million.
- ARC is a specialist beauty retailer with 12 stores across South Africa, planning to expand to between 20 and 30 stores in the medium term.
- The acquisition aims to give Clicks greater exposure to the premium beauty market, valued at more than R6 billion annually.
- ARC has been an affinity partner of the Clicks ClubCard since 2021, and Clicks stores are used as collection points for ARC’s click-and-collect service.
- The transaction is pending approval from competition authorities, with the effective date expected the first day of the month following approval.
Clicks Group has acquired a controlling stake in luxury beauty retailer ARC store as it looks to tap into a sector valued at more than R6 billion a year.
The retailer has increased its stake in the specialist beauty chain to 61% after acquiring a further 35.3% interest from ARC’s founding shareholders for R507 million.
ARC is a beauty retailer that specialises in skincare, fragrance, makeup and haircare among other things. It currently has 12 stores across South Africa and intends on increasing to between 20 and 30 stores over the medium term.
READ: Ex-Clicks CFO Michael Fleming joins Santam board
Bertina Engelbrecht, Clicks group chief executive, said the acquisition of a controlling stake would give the group greater exposure to the growing premium beauty market.
“ARC has established a differentiated position in the premium beauty market, and we see potential to grow the business and to leverage the strengths of both ARC and Clicks.
“Our increased shareholding gives Clicks greater ability to participate in ARC’s future growth while retaining the founders and management who built the business,” said Engelbrecht.
Clicks and ARC already have an established commercial relationship. ARC has been an affinity partner of the Clicks ClubCard since 2021, while Clicks stores serve as collection points for ARC’s online click-and-collect service.
In the past year, spending at Clicks by ARC customers increased 16% to R836 million.
READ: Clicks accelerates electric truck rollout with 30-vehicle fleet
Jamie Lane, ARC chief executive, said the business would retain the culture that had underpinned its growth as it entered its next phase.
“ARC’s shareholders and partners recognise that the unique ARC culture, entrepreneurial, customer-focused, innovative and brand-led, is fundamental to achieving its ambitious goals.
“We have crafted a partnership where that culture will remain at the heart of the business as we enter this next phase of growth,” said Lane.
The transaction is still subject to approval by the competition authorities, with the effective date expected to be the first day of the month following approval.
