Two well-known franchise brands in the $3.8bn hair and beauty retail sector are joining forces.

Australian Skin Clinics will merge with the Ella Rouge Beauty franchise, which was acquired by Hairhouse Warehouse in early 2016. This merger will double the Australian Skin Clinics’ franchise footprint in Australia and New Zealand overnight.

Australian Skin Clinics managing director Deb Farnworth-Wood said the merger with Ella Rouge Beauty and the partnership with Hairhouse Warehouse was an easy decision with all companies having clear synergies.

“Hairhouse Warehouse, Ella Rouge and Australian Skin Clinics all share the same target market, which will afford our brands the opportunity to provide enhanced services and offerings to our loyal customers, and it is this customer-focused culture that has aligned the businesses so well.

“Ella Rouge Beauty has been looking after millions of Australian women and their beauty needs for more than 17 years. Aligning the two companies will provide benefits such as the utilisation of consumer data bases, buying and trading upsides with common suppliers, and the ability to have robust negotiations with most of the mainstream landlords.”

Nine of the 25 Ella Rouge outlets are corporate owned, the rest franchised. The merger of the two medi-aesthetic businesses will see all the Ella Rouge Beauty stores rebrand to Australian Skin Clinics with the latter’s portfolio growing from 25 stores to 50 stores.

Farnworth-Wood said there are “further growth plans in the pipeline including more than 20 new clinics in the 2016/17 financial year and another four clinics in New Zealand over the next 12 months”.

Since launching in 1992, Hairhouse Warehouse has expanded to more than 140 outlets across Australia and with current network sales in excess of $200m.

Hairhouse Warehouse co-owner Gavin Nixon said “We are extremely excited to have merged Ella Rouge Beauty with Australian Skin Clinics and we see the move as a great strategic step forward.

“When deciding on this merger, the alignment of key corporate goals was of the upmost importance,” he said.

“The like-mindedness of our franchise networks is an absolute strength with all brands being customer-centric and offering high quality services at affordable prices.

“The Hairhouse Warehouse growth strategy includes a focus on the expansion of our suite of brands in the hair and beauty sector over the next three to five years, with a firm goal of an IPO listing.”

Australian Skin Clinics offers a range of results-driven cosmetic treatments including laser hair removal, cosmetic injectables, microdermabrasion, acne management, treatments for rosacea, pigmentation, scarring, sun damage and skin care.

• FInd out more about Australian Skin Clinics and Hairhouse Warehouse.