PHC Holdings Corporation (headquarters: Tokyo, hereafter PHCHD) has today announced the completion of its acquisition of an additional 55.01% of shares in SciMed (Asia) Pte Ltd (headquarters: Singapore, hereafter SciMed), a major distributor of PHC Group’s life sciences products across Southeast Asia and India. This purchase agreement with SciMed increases PHCHD’s stake in the company from 14.99% to 70%. SciMed will now operate as a consolidated subsidiary of PHCHD, as part of the Life Sciences/Diagnostics Domain.
Located in Singapore, SciMed markets and distributes life sciences products and provides its services throughout Southeast Asia and India. With an extensive distribution network in the region, supported by strong expertise and service capabilities in the life sciences field, SciMed is a major player in the Southeast Asian market. PHCHD has positioned SciMed as the main distributor for their life sciences business across Southeast Asia and India, and has expanded its business in the region through their close partnership over 30 years.
This agreement is part of PHC Group’s focus on company growth, by strengthening existing businesses and identifying ways to add complementary products and services to the group. It follows the completed acquisitions of the anatomical pathology business (operating as Epredia) from Thermo Fisher Scientific, Inc. in June 2019, and LSI Medience Corporation from Life Science Institute, Inc. in August the same year, which have strengthened their diagnostics and healthcare services businesses respectively.
As one of the key pillars of its future growth strategy, the PHC Group continues to focus on driving expansion in countries in the emerging markets. The majority investment in SciMed to create a consolidated subsidiary of PHCHD allows PHC Group to take greater advantage of SciMed’s established customer base and services in the region. This will provide additional market opportunities and increase penetration into countries such as India, which can further strengthen the life sciences business. It will also allow other PHC Group businesses to utilize SciMed’s distribution network to reach customers in the region.
Michael Kloss, President and CEO of PHCHD, says, “We are pleased to have taken this step to bring SciMed into the PHC Group as a consolidated subsidiary. In recent years, we have seen that life sciences research is making considerable progress in India and other emerging countries. Against the backdrop of increases in the prevalence and impact of conditions such as cancer, we expect more growth in the diagnostics business in the region. Through this deal to acquire the majority stake in SciMed, our Group will increase our footprint in emerging countries and give us the opportunity to accelerate business growth in the region.”
Keith Low, SciMed Managing Director, says, “The life sciences products that PHC Group develops and manufactures are highly trusted by customers for their quality, with deep penetration in the Southeast Asian market. Recently, we have been seeing more demand in the Indian market that is expected to exceed the growth rate of China. With more support from the PHC Group, we will be able to help drive future growth in the life sciences and diagnostics businesses.”
Michael Kloss added, “In Southeast Asia and other emerging countries, there is demand for higher-quality healthcare and better medical services for patients. The PHC Group will continue to take on new challenges as we aim to become one of the top global healthcare companies by creating solutions that contribute to the health of society and improve the lives of people.” –BusinessWire