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Clearbridge acquires majority stake in 9 dental clinics in Singapore
CLEARBRIDGE Health has entered into an agreement to acquire for S$3.3 million a 51 per cent stake in nine dental clinics in Singapore operating under the brand name Dental Focus.
Since setting up the first clinic in 2011, Dental Focus has expanded into a network of dental clinics across the republic, offering a range of dental services that include primary dental care, restorative and aesthetics dentistry and pain management.
Under the terms of the agreement, a special purpose vehicle (SPV) will be incorporated by Clearbridge Lifestyle (CBL), a wholly owned subsidiary of Clearbridge, for the acquisition. CBL and the vendor, Dr Joseph Seow Kok Siam, will hold 51 per cent and 49 per cent of the SPV respectively.
Clearbridge said that the acquisition is in line with its business strategy and increases its network of primary healthcare touchpoints. The clinics are profitable, and the acquisition is expected to have a positive impact on the group’s financial performance for the financial year ending Dec 31, 2019. The acquisition will be funded by bank borrowings.
In addition, the vendor will be entitled to earn out payments of up to approximately S$2 million over the next three years, if the clinics achieve an auditedcumulative net profit after tax of S$3.9 million over the next three years, said Clearbridge. The SPV will be given a three-year right of first refusal to acquire another six dental clinics and ancillary dental services providers, which are operating under the Dental Focus branding.
Jeremy Yee, chief executive officer of Clearbridge, said: “While we view this acquisition as part of our broader, longer-term strategy in Asia, it represents an immediate opportunity to expand the breadth of our healthcare services portfolio in Asia and contribute positively to our Ebitda (earnings before interest, tax, depreciation and amortisation). Aligned with our organic growth plans in Asia, there is strong potential for further value creation of this dentistry business with our growing regional presence."