PETALING JAYA: LYC Healthcare Bhd, via wholly owned subsidiary LYC Dental & Aesthetic Holdings Sdn Bhd (LYC D&A), today entered into a conditional share purchase agreement for the proposed acquisition by LYC D&A of 55% equity interest in Elite Dental Team Sdn Bhd (EDTSB) for RM5.5 million cash.
The LYC Healthcare group is currently focused on postpartum care, senior living home, childcare centre, dental, cosmetic and aesthetic, fertility, nutraceutical and general and specialised medical services (chronic disease and orthopaedics).
“Based on the consideration value of RM5.5 million attributable to the 55% equity interest in EDTSB, this will yield an implied valuation of RM10.0 million. The implied valuation of EDTSB represents a price-to-earnings multiple of 8.0 times of forward earnings based on the two-year average annual profit guarantee of RM1.25 million for the two financial years ending March 31, 2024 and March 31, 2025,” LYC said in a statement.
Incorporated on Feb 26, 2016, EDTSB is principally involved in the provision of dental consultancy services and treatments which include preventative dentistry, general dentistry (dental check-up, scaling, polishing, filling, extraction, root canal treatment, minor oral surgery), children’s dentistry, gum disease treatment, restorative dentistry (inlays and onlays, crowns and bridges, removable dentures), laser dentistry, cosmetic dentistry (veneers, teeth whitening), orthodontics (braces, invisalign) and others such as dental implant and full mouth rehabilitation.
EDTSB operates 22 dental clinics with four additional clinics under renovation and pending regulatory approvals located throughout Malaysia, including Kuala Lumpur, Selangor, Penang, Johor and Sabah.
EDTSB has about 40 dentists and 100 support staff under its group. The dental brands operating under EDTSB are PrimeCare Dental Clinic, Signature PrimeCare Dental, Lite Dental, Phi Dental and Quay Dental. EDTSB is one of the fastest growing dental groups in Malaysia and is widely believed to be within the top six largest dental groups in Malaysia by number of clinics.
The proposed acquisition of EDTSB follows the recent proposed acquisition of three dental clinics under the KL Dental brand in Klang Valley on March 23, 2022 and the proposed acquisition of a medical aesthetic clinic called Dr D Clinic and a beauty and wellness centre called iBody by Dr D under Tao Global Ventures Sdn Bhd on April 21, 2022.
The group expects the proposed acquisition of EDTSB along with the expected completion of KL Dental group of clinics and the aesthetic and beauty group Tao Global will strengthen the group’s rapidly expanding dental and aesthetic platform under LYC D&A and generate revenue uplift through synergies achieved from patient referrals and standardisation of clinical protocols through its enlarged network and patient database under its healthcare arm.
