Sojitz backs Malaysia's PE-owned Qualitas Medical

Transaction details were not disclosed. Southern Capital invested around $34 million in the company in 2011, taking a 78% stake and providing an exit for CIMB Private Equity & Venture Capital. Previous investors in the business have also included Partners Group, CAV Private Equity, Commerce Asset Ventures, and Warburg Pincus.

Southern Capital made two attempts to list Qualitas, in 2015 and 2018, with both efforts nixed difficult market conditions. The prospectus from the most recent attempt revealed revenue and net profit came to S$139.7 million ($104 million) and S$8.4 million in 2016. At the time, the company had 204 care centers. That footprint now exceeds 300.

Qualitas operates 249 locations in Malaysia, 13 in Singapore, and 39 in Australia. These include primary care clinics, dentists, and medical imaging facilities. In recent years there has been a shift toward primary care as general practitioners increasingly serve families and communities on an outpatient basis, referring patients to hospitals for advanced treatments as necessary.

The company employs more than 400 physicians and serves about 2.8 million patients a year. Services include management of acute and chronic illnesses, medical examinations, vaccinations and other preventative medicine, corporate services such as occupational physician services, and minor surgeries, comprehensive dental care and medical imaging services. COVID-19 testing for individuals and staff of corporate clients has also been introduced.

There are plans for an expansion into developing markets such as Vietnam, a build-out of the service offering, and a digitization drive. Sojitz is expected to support these efforts through its regional network and expertise. In 2017, Sojitz established a specialized team to strengthen its projects in healthcare.

The Tokyo-listed giant’s longer-term plans include the development of a healthcare platform to leverage synergies between the public and private sectors. That vision will be advanced through exposure to Qualitas as well as Footscray Hospital, a $1.5 billion development project in Australia. Sojitz acquired a 30% stake in the project earlier this month.

Singapore-based Southern Capital pursues control deals involving companies with enterprise values of $20-200 million in Malaysia, Singapore and Indonesia. The firm closed its fourth fund on around $500 million in 2018, supported by a stapled secondary led by AlpInvest Partners. Recent activity includes the sale of Singapore's Canadian International School for S$680 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Southeast Asia
• Expansion
• Healthcare
• Trade sale
• Malaysia
• Southern Capital