First Philippine Holdings Corporation (FPHC), a member of the Lopez Group of Companies, has completed the acquisition of 100 percent of medical equipment supplier Medical Services of America (Philippines) Inc. (MSA-Philippines) for P420.84 million.
In a disclosure to the Philippine Stock Exchange, FPHC said this comes after the execution of a Share Sale and Purchase Agreement in December last year between FPHC and MSA-Philippines.
MSA-Philippines operates a business supplying hospitals with medical device services, including medical personnel and was owned by Medical Services of America Inc.
“The acquisition is expected to provide FPHC a platform to add new service offerings to what MSA-Philippines offers now in the healthcare industry,” said FPHC.
It added that, “Along with Asian Eye Institute, Inc. and Pi Health, Inc., FPHC aims to create services that will improve the ecosystem of healthcare providers in the country and, ultimately, the health and wellness of the Filipino population.”
“The purchase will allow FPHC to acquire the entire operations of Medical Services of America Inc., including brand equity, human capital, equipment and fixed assets, and the network it has built in the industry,” FPHC said.
MSA-Philippines is an operating domestic entity with two main product lines: Services (cardio-pulmonary equipment rental, supplies, and personnel) and sale of medical equipment and supplies, servicing hospitals all over the country.
The acquisition consists of MSA-Philippines’ entire capital stock of 2.17 million shares at P207.33 per share based on the discounted cash flow on 10-year projections with terminal value using pre-pandemic growth rates and margins.
The enterprise value excludes cash and debt, but includes inventory and PPE. FPHC said 80 percent of the purchase price shall be paid upon closing, with a 20 percent retention for post closing audit adjustments.
This transaction is expected to generate synergies and value-accretive returns for FPHC’s shareholders.