LYC Healthcare Berhad is set to acquire KL Dental (Kiara) Sdn Bhd which owns the entire equity ownership and operates the KL Dental outlet in Kiara 163, KL Dental outlet in SS15 Courtyard and KL Dental (Connaught) for a combined total purchase consideration of RM3,183,582.
The healthcare group said the proposed acquisitions total purchase consideration represents a price-to-earning (“P/E”) multiple of 5.8 times, over the aggregate PAT of RM546,680 of the three dental outlets for the 12-month financial period ended December 2021.
LYC has been on an acquisition trail with clinics in Singapore and now the dental clinics in Klang Valley, the procedures are part of its plans to list in SGX-ST in the near future. Upon completion of the acquisition, the group plans to upgrade and explore the possibility of opening additional dental clinics when market permits.
The Group foresees the growth in the dental industry will mainly be driven by a growing and aging population that increases demand for dental services. Other factors driving growth within the industry will come from the higher demands for cosmetic dentistry due to rising disposable income (which in turn spur higher spending on dental aesthetics) among consumers, as well as the expansion in the dental tourism industry in tandem with the growing healthcare travel industry.