Australian listed company Vita Group (ASX: VTG) has announced its entrance into the estimated $1 billion per annum Australian non-invasive medical aesthetics (NIMA) market, with a conditional agreement to acquire Clear Complexions. 

Vita Group’s story began in 1995 with the opening of Fone Zone, Australia’s first mobile phone retail outlet. In its first ten years the company grew to more than 100 Fone Zone stores across Australia, rebranding to Vita Group in 2008.

Today Vita describes itself as “a leading provider of brands that enhance people’s way of life” and says its entry into the NIMA category is part of the group’s previously announced strategy to add diversity to its portfolio. 

The brand’s premium service offering, and the opportunity for Vita to apply its core competencies to drive further growth, scale and profitability were the main reasons behind the acquisition. 

“There is great alignment between the two businesses, and we see Clear Complexions as being a good cultural fit with Vita – which is of key importance to us. Both organisations are firmly focused on meeting customers’ needs, and on delivering an exceptional customer experience,” said Ms Horne.

With 22 years experience in retailing, Vita brings significant knowledge to support Clear Complexions’ growth. 

Clear Complexions’ founder Suzie Hoitink, said, “We’re really excited about this new phase for our business, which we have built from the ground up. The team at Clear Complexions are passionate about empowering our clients to be the best that they can be – and that will stay core to our model. The team and I are looking forward to delivering excellent results for shareholders as we continue to grow. We will do this by taking advantage of Vita’s well-established business practices, and of course, a continued focus on delivering even better experiences to our clients.”

Vita will acquire Clear Complexions via an asset purchase agreement for $9.5 million, comprising $8.5 million in cash and $1 million in VTG shares. The sellers will receive an option to obtain a five per cent interest in the new NIMA business for nominal consideration, as well as the potential to receive earn-outs should the business exceed earnings targets over the next two years.  The acquired business is anticipated to deliver annual revenue of around $10 million, and earnings before interest, tax, depreciation and amortisation (EBITDA) of over $1 million in the year post acquisition, with further growth anticipated in the future.