Australian Pharmaceutical Industries Ltd (ASX: API) has entered a binding agreement to buy Clearskincare Clinics for $127.4 million.

Australian Pharmaceutical Industries (API) is the holding company of several pharmacy businesses, it has over 420 Pricelines, 100 Soul Pattinson Chemists and 72 Pharmacist Advice pharmacies. Clearskincare Clinics is a provider of non-invasive aesthetic services like laser hair removal, skin treatments and cosmetic injectables.

Australian Pharmaceutical Industries will acquire 50.1% of the clinic business and 100% of the skincare product business. It will own 100% of the clinic business by September 2021.

API believes this is a good opportunity because it can apply its own systems, operational capabilities and scale to accelerate Clearskincare’s growth. API said the deal will be profit per share accretive in the next financial year with more growth in the following years.

The acquisition fulfills our criteria for aligning with a robust business in a burgeoning sector of the health and beauty market, this is service-based and away from government funding, and to which we can add further value for customers, clinic teams and shareholders,” API’s CEO Richard Vincent said.

Shareholders will be hoping this acquisition can turn the profit around because API’s half-year profit fell earlier in the year.

The Australian Pharmaceutical Industries share price is up 3.5% in early trade according to Google Finance. 

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