Cosmetic care merger a real beauty
COSMETIC treatments giant Australian Skin Clinics has merged with Hairhouse Warehouse to meet a growing appetite for beauty services from image-conscious consumers.
The Gold Coast-based company will merge with Ella Rouge Beauty, which was acquired by Hairhouse Warehouse earlier this year, doubling the laser and cosmetic rejuvenation brand’s footprint to 50 stores across Australia and New Zealand.
With Hairhouse Ware- house’s 140 outlets, the group becomes a bigger player in the $5 billion hair and beauty services industry.
Hairhouse Warehouse generates $200 million in network sales every year.
Co-owner Gavin Nixon said it was on the acquisitions trail and would focus on the “expansion of our suite of brands ... over the next three to five years, with a firm view of an IPO listing”.
“We see the move as a great strategic step forward,” Mr Nixon said.
“The like-mindedness of our franchise networks is an absolute strength.”
ASC is also embarking on an aggressive clinic rollout, hoping to boost its footprint with an additional 20 stores in the next 12 months.
The group was established on the Gold Coast in 1996. Its revenue is projected to be more than $30 million next financial year.
Chief executive Nikki Wright said the group was excited to consider a possible listing as it looked to take Australian Skin Clinics to the UK in the coming years.
“We want to build a brand for the future that is going to be a lifelong brand,” Ms Wright said.
Ms Wright said the beauty services industry had continued to boom in the past five years as the taboo of cosmetic procedures had eased.
“Customers have become a lot more comfortable with injectables and laser treatments,’’ she said.
‘‘Technology has meant treatments are quicker and having a presence in shopping centres means they’re more accessible.’’
Cosmetic clinics had been positioned away from busy centres but Ms Wright said their strategy of being “bang in the middle of the fashion run” had proven successful.