SINGAPORE - China Medical (International) Group (CMIG) has agreed to take a majority stake in The Sloane Clinic, an aesthetic and plastic surgery chain in Singapore and Malaysia .
CMIG will acquire a 51 per cent stake each in medical services companies Eastlife and Maxglobe, which own six clinics operating under The Sloane Clinic brand, from Asia Pacific Medical Group.
Asia Pacific Medical is wholly owned by Bain Gamma, a company majority owned by funds advised and affiliated with Bain Capital Private Equity.
Bain Capital is one of the world's leading private multi-asset alternative investment firms with more than US$75 billion in assets under management.
This is the first acquisition for CMIG, which was renamed from Albedo, following a revamp of its business strategy from metal trading to medical aesthetics in late 2015.
CMIG will purchase 40,800 shares in Eastlife and 81,600 shares in Maxglobe for S$9.5 million. The payment comprises S$6.5 million in cash and S$3 million in shares.
As part of the agreement, CMIG will also enter into exclusive new service agreements with The Sloane Clinic's lead doctor and co-founder, Dr Kenneth Lee and his group of doctors.
Dr Lee will continue to operate and manage the aesthetic and plastic surgery group after completion of the deal.
The Sloane Clinic provide services such as botox, laser treatments, dermal fillers, liposuction, cellulite reductions, breast augmentations, plastic surgery and anti-ageing treatments. Four of the group's clinics are located in Singapore and two in Malaysia.
Dr Lee and his group of doctors will be employed full-time and will be required to commit their skills and resources exclusively to The Sloane Clinic for an initial period of five years upon the deal's completion.
Dr Lee will be giving a performance assurance guaranteeing net profit after tax of not less than S$6 million for the next three financial years from 2017 to 2019.
In consideration of the performance assurance, CMIG will issue S$2 million worth of CMIG shares on completion of the acquisition to him and his group of doctors.