ABC Impact marks entry in PH health sector with AC Health deal

The investment will give the impact investor a minority stake in the Manila-based firm.

Impact investor ABC Impact, backed by Temasek Trust and Temasek, has entered into the Philippine healthcare market with an investment deal with AC Health.

In a statement, AC Health said that part of the agreement is ABC Impact injecting primary capital for a 16% minority stake in the former. The fresh capital will fuel the Philippine company’s expansion across its core pillars of hospitals, multi-speciality clinics, and retail pharmacies through a combination of organic initiatives and targeted acquisitions.

By 2027, AC Health aims to expand its network to at least 10 hospitals, 300 clinics, and 1,150 pharmacies.

“The partnership brings together AC Health’s integrated delivery network and ABC Impact’s thematic investing experience in inclusive healthcare solutions,” AC Health said.

The investment also boosts ABC Impact’s regional investments, which include Vietnam-based Kim Dental, the country’s largest private dental care network; India-based DCDC Kidney Care, a dialysis provider operating over 200 centres across underserved regions; and HiRo, a clinical research organisation supporting mid-sized global pharma and biotech companies across Asia Pacific and the US.

BofA Securities acted as the exclusive financial advisor to AC Health in connection with the transaction. Completion of ABC Impact’s investment in AC Health is subject to the satisfaction of closing conditions.