Gelonghui, March 26, 丨 Beautiful Garden Healthcare (02373.HK) announced that on March 26, 2024, the buyer Guangzhou Meilitianyuan Health Research Co., Ltd. (a wholly-owned subsidiary of the company) entered into an investment agreement. According to this (among others), the seller conditionally agreed to sell, while the buyer conditionally agreed to acquire the target shares (accounting for 70% of the total shares of the target company Guangzhou Nariel Health Consulting Co., Ltd.), at a cost of RMB 350 million.
The seller's main business is currently operating the Nerill brand. Nariel is the second-largest traditional beauty service provider in China based on 2021 revenue1. The deal involved a total of 80 beauty and health service stores, 6 medical aesthetic clinics (one of which also operates sub-health care business), and 2 traditional Chinese medicine clinics. The above stores are mainly located in Guangzhou and Shenzhen. Upon completion, the target company will own the Nerill brand and directly operate the above stores.
According to the target company's unaudited financial data, its revenue and net profit for the year ended 31 December 2023 were approximately RMB 514.4 million and RMB 33.4 million, respectively. The acquisition will increase the company's revenue and profits and significantly increase its market share. Under the original Sanmei business model, the acquisition will inject new momentum into the Group's long-term growth.
Beautiful Garden has been operating in the beauty and health service industry in China for over 30 years. The Group insists on expanding its business scale through endogenous growth and strategic acquisitions, and has rich experience in industry acquisitions and integration. Since 2014, the Group has continued to explore industry integration opportunities and successfully completed more than 20 acquisitions in the beauty and health care industry.
At the same time, the Group has rich experience in the fields of chain enterprise management, digital transformation, customer operation management, product innovation, etc., which will be used to empower the operation and management of target companies. The acquisition of the Nerill brand will be an important step for the Group's outreach growth. The Group will expand its store network and increase its membership base, further raise revenue levels by leveraging the advantages of the Group's original Sanmei business model, and build a beautiful and healthy business ecosystem that meets the needs of customers throughout the life cycle.