KKR Eyes Sale of Laser Clinics Australia, Targeting $1 Billion Deal

KKR is reportedly in talks to sell Laser Clinics Australia, a hair removal and injectables clinic business it acquired in 2017 for $650 million. The New York-based buyout firm has been targeting private equity firms in Europe and is seeking a deal worth over $1 billion. KKR has doubled the size of the business since its purchase and has been expanding in Europe and Britain.

In a move that underscores the private equity giant's continued interest in the Australian market, KKR is reportedly in advanced talks to sell its majority stake in Laser Clinics Australia (LCA), the leading provider of non-invasive aesthetic treatments in the country [1]. Sources familiar with the matter suggest that the New York-based firm is targeting private equity firms in Europe and seeking a deal worth over $1 billion [2].

Established in 2008, LCA has expanded rapidly over the years, opening its first clinic and growing its network to over 80 locations across Australia, supported by a team of franchisees and experienced medical professionals [1]. Under KKR's ownership, the company has more than doubled in size and expanded its presence in Europe and Britain [2].

The strategic partnership between KKR and LCA has been instrumental in driving the company's growth. In addition to financial support, KKR has assisted LCA's management and franchise network in expanding the clinic network, introducing new product and service offerings, and enhancing its international presence [1].

Since its acquisition in 2017 for $650 million, LCA has continued to thrive, offering a range of treatments and services, including laser hair reduction, cosmetic injectables, skin treatments, and complementary products [1]. The company's success can be attributed to its commitment to providing high-quality services, its loyal client base, and its experienced team of over 135 doctors and nurses [1].

Tim Sinclair, General Manager of LCA, expressed his excitement about the prospect of continuing LCA's relationship with KKR, stating, "KKR has a deep understanding of our industry and brings significant global and operational experience. With their support, we will be even better equipped to grow the business, enhance the quality of our services, and improve our proposition to women and men across Australia" [1].

Scott Bookmyer, Head of KKR Australia, shared Sinclair's enthusiasm, saying, "We are excited to partner with Laser Clinics Australia. LCA is a world-class aesthetic treatment provider with an excellent brand, a track record of clinical and performance excellence, and a loyal client base. We look forward to working with LCA's talented team and The Growth Fund to support the Company's long-term strategy and further demonstrate KKR's commitment to promoting innovative Australian businesses" [1].

As KKR prepares for a potential exit from LCA, the private equity firm's focus on growth and expansion is likely to continue, positioning the company for even greater success in the future.

References:
[1] Business Wire. KKR to Acquire Majority Stake in Laser Clinics Australia. (September 1, 2017). https://www.businesswire.com/news/home/20170901005148/en/
[2] Reuters. KKR in Talks to Sell Laser Clinics Australia for Over $1 Billion -Sources. (October 21, 2022). https://www.reuters.com/world/australia/kkr-in-talks-to-sell-laser-clinics-australia-for-over-1-billion-sources-2022-10-21/