Thomson Medical Group OKs acquisition of Vietnam’s FV Hospital

The acquisition costs $517.1m (US$381.4m).

SGX-listed Thomason Medical Group (TMG) revealed that it acquired its biggest healthcare transaction to-date and Southeast Asia’s largest healthcare acquisition since 2020.

It acquired 100% of Far East Medical Vietnam Limited, which operates a range of healthcare centres in Vietnam such as the multi-disciplinary tertiary FV Hospital and a network of primary and specialist clinics.

Based on the initial consideration of over US$359.6m (or approximately $487.5m and after price adjustments, this translates into an enterprise value of US$328.5m (or approximately $445.3m). Based on the FY2022 EBITDA of US$19.5 million, this translates into an EV/ EBITDA of 16.8x. 

The purchase will be funded via the TMG’s “internal resources and external borrowings from financial institutions and debt capital markets.”

“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 in healthcare. 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,” said Kiat Lim, TMG’s Executive Vice-Chairman.

$1 = US$0.75