Accrelist enters deal to acquire The Wellness Clinic for S$17 million

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Accrelist has entered a non-binding term sheet to acquire The Wellness Clinic from Verita Healthcare Group for S$16.96 million as part of the expansion of its medical aesthetics arm, Accrelist Medical Aesthetics, the company said in a filing to SGX Tuesday.

The Wellness Clinic, located at Wheelock Place, a mall in Singapore’s tony Orchard Road shopping belt, specializes in non-surgical aesthetics treatments for dermatological conditions such as acne, pigmentation and aging skin, Accrelist said.

Accrelist said it has been targeting affluent clientele with a presence in Singapore’s prime districts.

“The proposed acquisition is expected to result in synergies for the group as we continue to grow A.M Aesthetics,” Terence Tea, executive chairman and managing director of Accrelist, said in the statement.

“We look forward to leveraging and tapping on the capabilities of Verita and The Wellness Clinic following the acquisition, to enable A.M Aesthetics to offer an expanded range of products and services to its customers,” Tea added.

The deal is conditional on Accrelist and Verita entering a definitive agreement and on approval by Accrelist’s shareholders, the filing said.

The acquisition will be funded partly in cash, via a combination of internal resources and/or a fundraising exercise, with the remainder to be funded by issuing new shares at S$0.12 each, Accrelist said.

The Wellness Clinic posted a normalized profit after tax of S$1.41 million for the fiscal year ended 30 June 2019, the filing said. Verita will provide a three-year profit guarantee, with the details still to be decided, the filing said.

“Medical aesthetic treatments are becoming more widely accepted by affluent consumers and the group expects demand to increase among Singapore’s ageing population. This was evidenced by the profit before tax of more than S$1 million contributed by the medical aesthetics chain” for the fiscal year ended 31 March, Accrelist said.

Accrelist said it entered the aesthetics segment after its October 2018 acquisition of the Refresh Laser Clinic network, which was renamed A.M. Aesthetics brand.

The A.M Aesthetics’ network has expanded across Singapore and the first overseas clinic, located in Penang, Malaysia, was launched in August, the filing said. This month, Accrelist also said it launched a joint venture clinic in Kuala Lumpur with Ozhean Skin and Plastic Surgery, which operates five clinics in South Korea.

Accrelist said it plans two more Malaysia clinics by year-end.

Verita is a global provider of preventative, personalized healthcare and wellness services using medtech, analytics and artificial intelligence, the filing said.

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