Clicks Group is set to take control of premium beauty retailer ARC in a R507 million transaction that will increase its shareholding from 25.7% to 61%, strengthening its position in South Africa’s premium beauty market.
The health and beauty group is acquiring a further 35.3% interest from ARC’s founding shareholders. The purchase price implies a valuation of approximately R1.4 billion for the business.
The transaction remains subject to approval by the competition authorities.
Clicks expands its premium beauty investment
Clicks first invested in ARC in 2021 and increased its holding to 25.7% in 2025.
The latest transaction will give Clicks a controlling stake in the retailer, providing greater exposure to a premium beauty market valued at more than R6 billion annually.
Clicks CEO Bertina Engelbrecht said ARC had “established a differentiated position” in the segment.
The acquisition also gives Clicks a dedicated prestige beauty platform alongside its existing mass-market pharmacy and beauty stores, Sorbet salons and The Body Shop.
ARC targets up to 30 stores
Founded in 2020, ARC specialises in international prestige brands across fragrance, skincare, makeup, haircare and bath and body.
The retailer operates 12 stores in major shopping centres across South Africa, alongside its online business. Its Sandton City outlet is described by Clicks as Africa’s largest beauty store.
ARC plans to expand its footprint to between 20 and 30 stores over the medium term.
Reaching the upper end of that target would more than double its current store count, substantially increasing Clicks’ presence in the premium beauty segment.
The existing shareholders will remain invested in ARC, while its executive management team has committed to staying with the business until at least 2028.
ARC CEO Jamie Lane said the partnership had been structured to ensure the company’s culture “will remain at the heart of the business” during its next phase of growth.
Existing partnership provides a platform for growth
Clicks and ARC already have an established commercial relationship.
ARC has been an affinity partner of Clicks ClubCard since 2021, while Clicks stores serve as collection points for ARC’s online orders.
Over the past year, ARC customers spent R836 million at Clicks, representing an increase of 16%.
The existing relationship provides opportunities for the businesses to build on their shared customer base as ARC expands.
Competition approval still required
The proposed acquisition is subject to approval by the competition authorities.
If approved, the transaction is expected to take effect on the first day of the month following that approval.
Until then, Clicks’ proposed controlling interest in ARC remains conditional.
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