Thomson Medical Group Ltd. (TMG) announced on July 12 that it has agreed to acquire Vietnam’s FV Hospital for up to $381.4 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 of Vietnam’s burgeoning healthcare market and TMG’s continued commitment to expanding its footprint in the region.
Under the terms of the sales and purchase agreement, TMG has agreed to acquire all of Far East Medical Vietnam Ltd. (FEMV). FEMV operates a range of healthcare facilities in Vietnam, including the multidisciplinary tertiary FV Hospital and a network of primary and specialist clinics.
Based on the initial consideration of approximately $359.6 million and after price adjustments, this translates into an enterprise value (EV) of $328.5 million. Based on the FY2022 earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $19.5 million, this translates into an EV to EBITDA of 16.8x.
The purchase will be funded via the group’s internal resources and external borrowings from financial institutions and debt capital markets.
Kiat Lim, TMG’s executive vice-chairman, first initiated discussions with FV Hospital some six months ago.
Lim stated, "The acquisition of FV Hospital deepens our commitment to the Southeast Asian healthcare sector, expanding our group’s presence across three of the region’s most important geographies. 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 of French physicians who shared the vision of bringing world-class healthcare to Vietnam. Located in District 7 of Ho Chi Minh City, FV Hospital has evolved into a full-service, one-stop provider of quality healthcare for patients locally, and is also popular with those from Cambodia.
FV Hospital was the first Joint Commission International accredited hospital in southern Vietnam. It has now been accredited twice, which is a testament to its commitment to clinical quality and patient-centric service across its decades-long history.
Guillon, founder and CEO at FV Hospital said, "We would like to express our appreciation for the support and collaborative partnership we have had with Quadria. 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 of TMG moving forward, I am incredibly excited about the next phase of FV’s growth journey. Together, we will continue to chart a path of continued success and shape the future of healthcare in Vietnam."
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