SBC Medical Group Holdings Announces Definitive Agreement to Acquire, Aesthetic Healthcare Holdings Pte. Ltd, a Multi-Unit Owner of Aesthetic Treatment Clinics in Singapore
SBC to leverage operational synergies and implement growth strategies to launch into new verticals and geographies (Graphic: Business Wire)
Aesthetic Healthcare establishes bridgehead for expansion into Asia and accelerate SBC’s presence in global markets
SBC to leverage operational synergies and implement growth strategies to launch into new verticals and geographies
TOKYO, November 18, 2024--(BUSINESS WIRE)--SBC Medical Group Holdings Incorporated (Nasdaq: SBC) ("SBC Medical", or the "Company", or "SBC"), a global provider of comprehensive consulting and management services to the medical corporations and their clinics, today announced that it has entered into a definitive agreement to acquire Aesthetic Healthcare Holdings Pte. Ltd. ("AHH"), a privately-held Singapore-based company that owns and operates several brands that provide aesthetic medical treatments in an all cash transaction scheduled to close on November 13, 2024.
The acquisition by SBC of AHH marks the first step in Company’s strategy to grow its business through acquisitions, which includes plans to expand its business internationally with a primary focus on the U.S. and Asia markets. The Company believes Singapore represents the ideal hub for the further development of its brand in the region.
Strategic Rationale: A foothold to expand into Asia Founded by Dr. Ewen Chee, a pioneer in Singapore's aesthetic medical industry, AHH is well established in the country with a multi-brand strategy that caters to diverse customer needs. With the acquisition of AHH, SBC believes it has taken an important step toward expanding its presence in the Asian market. AHH's portfolio consists of four brands and 21 outlets, and will be added to the SBC clinic network, strengthening its customer base in the Asian region. SBC has positioned Singapore as the core of its Asian operations and plans to leverage the high brand recognition AHH has established to promote strategic partnerships throughout Asia. The expansion of SBC's global presence is consistent with its mission to establish leadership in the aesthetic medical industry by providing the value of beauty and health beyond national borders through innovative aesthetic medical treatments.
Strategies to Expand the Aesthetic Medicine Market by Leveraging Singapore's Advantages As disposable income increases in line with recent economic growth, demand for aesthetic medical treatments to maintain youth and beauty is growing rapidly. The Asian market in particular has shown remarkable growth, and currently accounts for the second largest share of the global aesthetic medical market, with an average annual growth rate of 11%*, exceeding that of any other region. Among these, Singapore is ideally positioned as a gateway to the Asian market due to its geographical and cultural advantages, and with its well-developed medical infrastructure and regulatory environment. SBC believes it is an ideal base for expanding services throughout Asia. *Data Source: https://straitsresearch.com/report/aesthetic-medicine-market
Dr. Ewen Chee, Chief Executive Officer of Aesthetic Healthcare Holdings Pte. Ltd., said: "We are pleased to announce that our clinic group has become a member of SBC, one of the leading aesthetic medical clinic groups in Japan. Since our establishment, we have been committed to providing the best medical treatments to each and every patient in Singapore, and have earned the trust of many customers. We would like to express our deepest gratitude to our employees and patients for their support. We see this acquisition as an opportunity for new growth, and we are confident that SBC's advanced technology, management know-how, and extensive experience in the Japanese market will contribute greatly to our further development. We expect to accelerate our expansion throughout Asia and provide the best aesthetic medical treatments to as many patients as possible. We also hope to contribute to the expansion of the franchise business in the U.S. by utilizing the franchise business know-how we have cultivated through the operation of SkinGo! Together, with SBC, we aim to be a leader in the Asian aesthetic medicine industry and will make further efforts to meet the expectations of each and every patient."
Yoshiyuki Aikawa Founder and Chief Executive Officer of SBC Medical Group Holdings, Inc., said: "We are very pleased to welcome AHH to our group. AHH has been providing high-quality aesthetic medical services in Singapore for many years and has earned the trust of many customers. With this acquisition, we expect to accelerate our expansion into the Asian market and strengthen our global aesthetic medical treatment delivery system. We are confident that we can create significant synergies by combining expertise in aesthetic medical treatments and management know-how we have cultivated in Japan with AHH's brand power and customer base. We intend to grow together while respecting the corporate culture that AHH has cultivated thus far. We will also respect the culture and customs of Singapore and try to manage the company in a way that is rooted in the local community, while actively contributing to the local community. By leveraging the strengths of both companies, we aim to become a leading aesthetic medical clinic in Asia."
About SBC Medical SBC Medical, headquartered in Irvine, California and Tokyo, Japan, owns and provides management services and products to cosmetic treatment centers. The Company is primarily focused on providing comprehensive management services to franchisee clinics, including but not limited to advertising and marketing needs across various platforms (such as social media networks), staff management (such as recruitment and training), booking reservations for franchisee clinic customers, assistance with franchisee employee housing rentals and facility rentals, construction and design of franchisee clinics, medical equipment and medical consumables procurement (resale), the provision of cosmetic products to franchisee clinics for resale to clinic customers, licensure of the use of patent-pending and non-patented medical technologies, trademark and brand use, IT software solutions (including but not limited to remote medical consultations), management of the franchisee clinic’s customer rewards program (customer loyalty point program), and payment tools for the franchisee clinics. For more information, visit https://sbc-holdings.com/
About Aesthetic Healthcare Holdings Pte. Ltd. AHH is based in Singapore and operates aesthetic medical clinics, family clinics, and quick facial aesthetics outlets. The founder, Dr. Ewen Chee, is known as one of the pioneers in the field of aesthetic medicine in Singapore and is a co-chair of the first Asia Pacific Thread Lift Conference (APEM) and a board-certified physician by the American Academy of Aesthetic Medicine. He is a frequent speaker at international conferences and workshops, and his expertise and knowledge have been featured in numerous scientific publications.
SkinGo! (16 locations)https://skingo.sg/ Aesthetic salons focusing on facial menus
Family clinics (2 locations)
Forward-Looking Statements This press release contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company’s beliefs regarding future events and performance, many of which, by their nature, are inherently uncertain and outside of the Company’s control. These forward-looking statements reflect the Company’s current views with respect to, among other things, the Company’s product launch plans and strategies; growth in revenue and earnings; and business prospects. In some cases, forward-looking statements can be identified by the use of words such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," "targets" or "hopes" or the negative of these or similar terms. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current only as of the date of this release and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. The forward-looking statements are based on management’s current expectations and are not guarantees of future performance. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. Factors that may cause actual results to differ materially from current expectations may emerge from time to time, and it is not possible for the Company to predict all of them; such factors include, among other things, changes in global, regional, or local economic, business, competitive, market and regulatory conditions, and those listed under the heading "Risk Factors" and elsewhere in the Company’s filings with the U.S. Securities and Exchange Commission (the "SEC"), which are accessible on the SEC’s website at www.sec.gov.
