The disposal of Sinclair's non-aesthetics business and brands to Alliance Pharma for £132m (3.1x FY'15 sales, 14.7x EBITDA) in our view represents excellent shareholder value. The transaction will transform Sinclair into a pure-play aesthetics business with 5 core brands and a debt-free balance sheet. Today's FY results highlight FY'15 aesthetics sales of £27.8m, +35% lfl, propelled by Silhouette sales. With US launch of Silhouette expected in Q2 2016, we upgrade our recommendation to Buy. Our forecasts and target price are under review.
