First Philippine Holdings Corp. (FPHC), a member of the Lopez Group of Companies, has successfully finalized the acquisition of Medical Services of America (Philippines) Inc. (MSA-Philippines), a leading medical equipment supplier.
The transaction, valued at P420.84 million, marks a significant milestone for FPHC in expanding its presence in the healthcare industry.
The acquisition was executed through a share Sale and purchase agreement signed in December of last year between FPHC and MSA-Philippines, a subsidiary of MSA. With a focus on supplying hospitals with comprehensive medical device services and skilled personnel, MSA-Philippines has established a strong presence in the healthcare market.
FPHC views this acquisition as an opportunity to enhance and diversify its service offerings within the healthcare sector.
By leveraging the expertise of MSA-Philippines, along with other subsidiaries such as Asian Eye Institute, Inc. and Pi Health, Inc., FPHC aims to enhance the ecosystem of healthcare providers in the Philippines, ultimately improving the health and wellness of the Filipino population.
Through this transaction, FPHC gains access to MSA-Philippines’ operational assets, including brand equity, human capital, equipment, fixed assets, and an extensive industry network.
MSA-Philippines operates in two primary segments: services, which encompasses cardio-pulmonary equipment rental, supplies, and personnel, and the sale of medical equipment and supplies to hospitals nationwide.
The acquisition price is based on the discounted cash flow projections over a 10-year period, incorporating pre-pandemic growth rates and margins, resulting in a valuation of P207.33 per share.
The enterprise value excludes cash and debt, while including inventory and property, plant, and equipment.