Aoxin Q&M Dental Group has announced plans to acquire yet another dental group in China, less than a month after it announced an earlier, similar acquisition.
According to Aoxin, a subsidiary of Q&M Dental Group (Singapore), the second dental group is in southern China, while the first acquisition, announced on March 27, is in central China. Aoxin itself, has been operating in northern China.
The first acquisition of the dental group in central China will cost RMB150 million, and is to be paid in equal parts cash and shares, and will be backed by a profit guarantee of RMB71 million over 5 years.
The most recent acquisition will cost Aoxin RMB376 million and is similarly structured in equal parts cash and shares. Given the bigger ticket size, this second acquisition will come with a long-term profit guarantee of RMB358.5 million over 10 years.
Upon completion of the acquisitions, Aoxin's presence in China will reach 45 clinics and 140 dental professionals.
Separately, Q&M itself is in the midst of acquiring three other dental groups: one each in Singapore, Thailand and Australia. The deal sizes of all three acquisitions have yet to be announced.
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Aoxin says these acquisitions are in line with controlling shareholder Q&M's strategy to use the former as its "dedicated platform" for consolidating China operations and future acquisitions.
Aoxin is in talks with the parent company regarding a potential lifting of its existing non-compete restrictions with Q&M to enable expansion into regions beyond Northern China.
“These two potential strategic acquisitions mark an important milestone in Aoxin Q&M’s growth journey in China," says non-executive chairman Chua Ser Miang.
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"By expanding into both Central and Southern China, we are significantly strengthening our geographic footprint and building a scalable platform for long-term growth.”
“Importantly, these transactions are aligned with Q & M’s vision of positioning Aoxin Q & M as its dedicated China platform, and we believe this will unlock sustainable value for our shareholders over time," he adds.
