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Accrelist to buy Wheelock medical aesthetics clinic for S$17m
CATALIST-LISTED corporate accretion services provider Accrelist is looking to buy The Wellness Clinic at Wheelock Place for an indicative consideration of S$17 million.
The company said on Tuesday night that it had entered into a non-binding term sheet with Verita Healthcare Group for the proposed acquisition of the entire stake in the medical aesthetics clinic.
The consideration will be satisfied in part by cash – funded with internal resources and/or a fundraising exercise – and the reminder by the allotment and issuance of Accrelist shares at an indicative issue price of S$0.12 apiece.
The clinic uses anti-ageing technology and equipment, and specialises in non-surgical aesthetics treatments to address dermatological conditions such as acne, pigmentation and wrinkles. Its parent, Verita, is a global provider of preventative healthcare and wellness services that leverage medtech, analytics and artificial intelligence.
For fiscal 2019 ended June 30, The Wellness Clinic’s normalised profit after tax was about S$1.4 million, and Verita will provide a profit guarantee over three years, details of which are still under consideration, Accrelist said.
The indicative consideration was calculated taking into consideration the clinic’s normalised profit after tax for FY2019.
Accrelist said the proposed acquisition is in line with the network expansion of its medical aesthetics arm, Accrelist Medical Aesthetics (A.M Aesthetics), and its goal to target affluent clientele with a presence in Singapore’s prime districts.
The company told The Business Times in July that the move into facial recognition and medical aesthetics will help rejuvenate its fortunes, with those businesses being the main profit drivers.
The proposed acquisition of The Wellness Clinic is subject to Accrelist and Verita entering into a definitive agreement. It is expected to constitute a major transaction under Catalist rules, and will thus be subject to the approval of Accrelist shareholders.
Verita has granted an exclusivity period of 12 weeks for Accrelist to undertake its due diligence on the clinic.
W Capital Markets has been appointed as Accrelist’s financial adviser for the acquisition and will be assisting the company for the fundraising exercise.
The A.M Aesthetics brand opened its fifth clinic at Singapore’s Clementi Mall in June this year. Beyond Singapore, the medical aesthetics arm launched its first overseas clinic in Penang, Malaysia, on Aug 31, as well as a joint venture clinic in Kuala Lumpur on Sept 16 with South Korea’s Ozhean Skin and Plastic Surgery.
Accrelist said on Tuesday that it had also secured a franchise agreement with a local franchisee to set up a clinic in Ipoh, Perak. This will be its first medical aesthetics clinic to be launched through a franchise model, and the group’s third Malaysian clinic. Its lease has been secured, and the staff will receive training at A.M Aesthetics’ other clinics.
Shares of Accrelist last traded at 8.1 Singapore cents on Tuesday afternoon, up 1.5 cents or 22.7 per cent, before the acquisition was announced. The company requested a trading halt at 4.17pm, and lifted it on Tuesday night.