Q & M Dental Group (Singapore) plans to expand into Thailand via the acquisition of an equity stake in an unnamed Thai dental clinic chain.
This will expand its footprint that is now dominantly Singapore and Malaysia into Thailand.
Under terms of an MOU, the stake will be acquired at an enterprise value of 1.95 billion baht ($77.6 million). Q&M will be paying via a mix of cash and new shares.
The exact stake and price is to be determined.
According to Q&M, the target, one of the largest of its kind in Thailand, runs more than 30 clinics mainly in Bangkok but also other regional provinces.
One of the vendors, who is the founder of the target company, will sign a 15-year service agreement and will serve as its CEO or managing director.
See also: Saudi PIF-backed Salic to pursue full ownership of Olam unit
"The proposed acquisition supports the company’s long-term strategic objectives by enabling a measured and strategic entry into Thailand’s private dental market through an established local operator," says Q&M.
The acquisition will come with a step-up annual profit guarantee that starts from 123 million baht in FY2026 and increase steadily to 285 million baht in 2030 and at least that thereafter to 2033.
Q&M shares closed at 46 cents on Oct 15, up 3.41% for the day and up 62.5% year to date.
