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.”
