Thomson Medical Group’s Kiat Lim leads acquisition bet88 nhà cái đến từ châu âu FV Hospital

The SGX Mainboard-listed healthcare group Thomson Medical Group Limited (TMG) announced on July 12 that it has agreed to acquire Vietnam’s FV Hospital for up to 1.4 million, marking the country’s biggest healthcare transaction to date and Southeast Asia’s largest healthcare acquisition since 2020.

The deal highlights the growing significance bet88 nhà cái đến từ châu âu Vietnam’s burgeoning healthcare market and TMG’s continued commitment to expand its footprint in the region.

Under the terms bet88 nhà cái đến từ châu âu the sales and purchase agreement, TMG has agreed to acquire 100 per cent bet88 nhà cái đến từ châu âu Far East Medical Vietnam Limited (FEMV). FEMV operates a range bet88 nhà cái đến từ châu âu healthcare facilities in Vietnam, including the multi-disciplinary tertiary FV Hospital and a network bet88 nhà cái đến từ châu âu primary and specialist clinics.

Based on the Initial Consideration bet88 nhà cái đến từ châu âu approximately 9.6 million and after price adjustments, this translates into an enterprise value (EV) bet88 nhà cái đến từ châu âu 8.5 million. Based on the FY2022 EBITDA bet88 nhà cái đến từ châu âu .5 million, this translates into an EV / EBITDA bet88 nhà cái đến từ châu âu 16.8x. The purchase will be funded via the Group’s internal resources and external borrowings from financial institutions and debt capital markets.

“The acquisition bet88 nhà cái đến từ châu âu FV Hospital deepens our commitment to the Southeast Asian healthcare sector, expanding our Group’s presence across three bet88 nhà cái đến từ châu âu the region’s most important geographies in healthcare,” said Mr. Kiat Lim, TMG’s Executive Vice-Chairman, who first initiated discussions with FV Hospital some six months ago. “FV Hospital provides a strategic foothold for us in Vietnam and a gateway to grow and focus on future investments in this fast-growing market.”

FV was founded by Dr Jean-Marcel Guillon in 2003 with a group bet88 nhà cái đến từ châu âu French physicians who shared the vision bet88 nhà cái đến từ châu âu bringing world-class healthcare to Vietnam. Located in the burgeoning District 7 in Ho Chi Minh City, FV Hospital has evolved into a full-service, one-stop provider bet88 nhà cái đến từ châu âu quality healthcare for patients locally as well as from Cambodia.

FV Hospital was the first Joint Commission International (JCI)-accredited hospital in southern Vietnam, and has been accredited twice over; testament to its commitment to clinical quality and patient-centric service across its decades-long history.

It provides care across over 30 medical specialties, including oncology, cardiology, ophthalmology, orthopedics, maternity, and gastroenterology. It had close to 200 operating beds as bet88 nhà cái đến từ châu âu December 31, 2022, and is currently undertaking an expansion that will entail a seven-floor structure appended to the existing FV Hospital building (H Building).

H Building will house an extension bet88 nhà cái đến từ châu âu the cancer center, with the addition bet88 nhà cái đến từ châu âu advanced capabilities like PET scan, a CyberKnife, and a bone marrow transplant unit. It will also be home to new activities like IVF and dialysis, and the extension bet88 nhà cái đến từ châu âu outpatient services in cardiology, urology, maxillo-facial, and gastroenterology.

The FV Group currently has over 1,600 staff, which includes more than 200 Vietnamese and expatriate doctors. FV Hospital also operates, since 2013, an outpatient clinic known as FV Saigon Clinic in the heart bet88 nhà cái đến từ châu âu District 1, Ho Chi Minh City’s traditional business district. The American Chiropractic Clinic Ltd (ACC) business consists bet88 nhà cái đến từ châu âu a network bet88 nhà cái đến từ châu âu four clinics around Vietnam, which was acquired in 2022 to allow for expansion into chiropractic services and the development bet88 nhà cái đến từ châu âu sports medicine.

“We would like to express our appreciation for the support and collaborative partnership we have had with Quadria,” said Dr. Jean-Marcel Guillon, Founder and CEO at FV Hospital. “Together, we have embarked on a journey that has helped propel FV to its current position as a leading healthcare provider in Vietnam. With the support bet88 nhà cái đến từ châu âu Thomson Medical moving forward, I am incredibly excited for the next phase bet88 nhà cái đến từ châu âu FV’s growth journey. Together, we will continue to chart a path bet88 nhà cái đến từ châu âu continued success and shape the future bet88 nhà cái đến từ châu âu healthcare in Vietnam.”

As TMG’s largest strategic acquisition, FV Hospital unlocks a sizeable Vietnamese opportunity for the Group, paving the way for further inroads into one bet88 nhà cái đến từ châu âu Southeast Asia’s fastest-growing healthcare markets.

Vietnam’s growing private healthcare market has been driven by favorable macro-economic tailwinds, with significant growth potential in healthcare expenditure. Vietnam is one bet88 nhà cái đến từ châu âu the fastest growing economies in Southeast Asia, fueled by strong inflows bet88 nhà cái đến từ châu âu FDI given its geographical and competitive advantages, which underpins the strong growth in healthcare expenditure. Vietnam has recorded strong historical gross domestic product growth, with a compound annual growth rate (CAGR) bet88 nhà cái đến từ châu âu around 8.6 per cent in the 2017-2022 period, posting a healthcare expenditure CAGR bet88 nhà cái đến từ châu âu around 9.2 per cent in the period.

Rising healthcare demand in Vietnam is fueled by a rising middle class, an ageing population, as well as an expanding expatriate population. The country is well on its way towards its goal bet88 nhà cái đến từ châu âu becoming an upper-middle-class country by 2035 and a high-income country by 2045, given that it has the seventh-fastest growing middle class globally and will add 36 million to its middle class by 2030. Vietnam’s population also officially entered an ageing phase in 2017, and is among the most rapidly ageing countries in the world.

Life expectancy is 75.4 years, and senior citizens may account for more than 17 per cent bet88 nhà cái đến từ châu âu Vietnam’s population by 2030. In terms bet88 nhà cái đến từ châu âu expats, the country was home to approximately 101,550 in 2021, up from an estimated 83,500 in 2019, according to Ministry bet88 nhà cái đến từ châu âu Labor statistics.

Further underpinning the industry’s robust outlook is Vietnam’s rise as a medical tourism destination, thanks to solid demand from neighboring countries such as Cambodia, Laos, and Myanmar. Medical tourism in the country is estimated to generate annual revenue bet88 nhà cái đến từ châu âu approximately billion a year, with recent years seeing an influx bet88 nhà cái đến từ châu âu about 300,000 foreign tourists annually for medical checkups and treatment, 40 per cent bet88 nhà cái đến từ châu âu whom are concentrated in Ho Chi Minh City. Ho Chi Minh City and the Mekong Delta together make up approximately 30 per cent bet88 nhà cái đến từ châu âu Vietnam’s estimated 97 million population.