Long4Life, the listed investment firm launched by BidVest founder Brian Joffe earlier this year, announced its second deal last week, agreeing to pay R116 million, or about $9 million, in a cash and share deal for Sorbet, a South African chain of beauty salons. The deal is expected to complete by the end of August.
Sorbet opened its first location in 2005 and has since expanded its franchised salons to total 186 in South Africa. There are plans to open a location in the United Kingdom in the near future. The firm offers both men and women beauty treatments through a variety of branded stores including Sorbet Salon, Sorbet Dry Bar, Sorbet Man and Candi & Co. Draft financial statements for the 10 months ending in March estimate Sorbet’s annualized EBITDA to be approximately R14.2 million or almost $1.1 million.
The investment fits neatly into Long4Life’s investment strategy, which sources investment opportunities among consumer sector-oriented companies or ones which the firm describes as having a “lifestyle” focus. Long4Life also found Sorbet’s strong brand and nationwide footprint to also be appealing, positioning the firm well to expand both organically and through acquisition. The investment firm backs both listed and unlisted assets, and aims to deliver annualized growth in excess of 15% over the medium-to-long term.
Ian Fuhr, Sorbet’s founder, and the firm’s management team are all remaining with the company.