The SILK Laser Australia Ltd (ASX: SLA) share price is firmly in positive territory during Wednesday trade. This comes after the laser clinic company announced an update on its recent strategic acquisitions.
At the time of writing, SILK Laser shares are swapping hands for $3.97 apiece, up 3.52%, after earlier hitting an intraday high of $4.00.
What did SILK Laser announce?
According to its update, SILK Laser advised it has completed the acquisition of Australian Skin Clinics and The Cosmetic Clinic in New Zealand.
The agreement to acquire 100% of the ASC group involved an upfront cash consideration payment of $47 million. Furthermore, SILK Laser will pay up to another $5 million in ordinary shares based on the opening of certain new clinics.
SILK Laser noted that the acquisition will see 55 clinics added to its existing network of 63 clinics. This consists of 14 Victorian clinics and 14 New Zealand clinics which see the company enter into new geographical markets.
Both New South Wales and Queensland will effectively double their presence following the takeover with 23 clinics and 29 clinics, respectively.
SILK Laser plans to have a network of 150 clinics under its belt over the medium term.
SILK Laser CEO and co-founder Martin Perelman commented:
We're delighted to welcome the ASC and TCC teams to SILK, and excited by the growth potential we see for our combined businesses.
With growing revenues, healthy margins, profitable operations and growing cashflows, SILK is in a unique position to support our growing loyal customer base, build exciting careers for our franchise owners, nurses and other team members, and deliver sustainable growth in shareholder value.
About the SILK Laser share price
Over the last 12 months, SILK Laser shares have posted a modest 12% gain for investors. The company's share price reached an all-time high of $5.30 in March before pulling back in the months following.
Based on today's price, SILK Laser presides a market capitalisation of roughly $206 million, with almost 52 million shares outstanding.
