Clearbridge Health Limited, a healthcare company with a focus on the delivery of precision medicine in Asia, today announced that it has completed the acquisition of a 65% equity interest in Philippines healthcare services provider, Marzan Health Care Inc. (“Marzan”). This follows the Company’s announcement on 4 January 2018 of the Group’s proposed expansion into the Philippines.
Located in Quezon City, Metro Manila, Marzan operates the Marzan Health Care Diagnostic Centre, a modern and well-equipped facility which provides a wide range of services including pathology services, imaging diagnostics, dental care, as well as dialysis and renal care. In addition to being an ideal platform for the Group’s expansion into the Philippines, Clearbridge intends to tap on Marzan’s existing network to distribute its suite of precision medicine products and services to benefit from revenue synergies within the Group.
Mr Jeremy Yee, Executive Director and Chief Executive Officer of Clearbridge, said: “The acquisition marks our first foray into a new market since our initial public offering in December 2017. We are excited to have gained a foothold in one of the fastest growing economies in the world, where demand for healthcare services, such as those provided by Clearbridge, continues to thrive amid a slew of positive macroeconomic and industry-specific factors.”
The Philippines is in the midst of an extended period of economic expansion, with the World Bank predicting growth of more than 6% for the country till 2019.1 The economy grew 6.9% in the third quarter of 2017, its ninth consecutive quarter of expansion in excess of 6%.2 The economic prosperity has given rise to a growing middle class and greater resultant demand for quality healthcare services.
The Philippine government has also committed to invest more in the country’s healthcare infrastructure through the provision of better services and facilities. In December 2017, President Rodrigo Duterte passed into law a new tax reform program that would raise additional revenues, of which 85% is earmarked for healthcare expenditure to fund universal healthcare, upgrade medical facilities and train doctors and nurses.
“With our strong expertise in precision medicine and our patient-centric approach to healthcare, coupled with the local expertise of Marzan, we are confident that we can capitalise on the opportunities in the Philippine medical sector to deliver the best-in-class treatment and experience for our patients,” Mr Jeremy Yee adds.
Approximately 40% of the consideration for this acquisition was funded by proceeds from the Company’s IPO and the balance was funded by a bank loan.
“We are encouraged by the support and valuable counsel of our principal banker. We continuously seek to optimise our capital structure, as we expand our businesses in a sustainable and prudent manner, to build shareholder value.” says Mr Jeremy Yee.