BOQI International Medical acquires three hospitals for $24.92m
Two of the hospitals specialise in OB/GYN and traditional Chinese medicine.
China-based BOQI International Medical (BIMI) is acquiring three private hospitals in the country, namely Yunnan Yuxi Minkang Hospital, Wuzhou Qiangsheng Hospital and Suzhou Eurasia Hospital for a total of $24.92m (RMB162m), according to a press release.
Partial consideration for the purchase will be paid at its closing set in late April, through a combination of cash worth $3.08m (RMB20m) and 4 million shares of common stock of the company agreed to be valued at $12m (RMB78m).
The remaining purchase price of $9.85m (RMB64) is subject to post-closing adjustments based on the performance of the hospitals in 2021 and 2022. Specifically 50% of the amount will be payable to the sellers if their aggregate net profit in 2021 hits at least $1.54m (RMB10m).
Otherwise, a reduced earnout amount will be payable based on the ratio of the actual aggregate net profit to the target. The sellers will be entitled to receive 50%, or a smaller portion, of the earnout amount subject to the hospitals reaching a similar target in 2022.
Yunnan Yuxi Minkang Hospital has 120 hospital beds and 118 employees, including 28 doctors and 55 nurses. Meanwhile, Wuzhou Qiangsheng Hospital Qiangsheng has 20 hospital beds and 68 employees, including 10 doctors, 26 nurses. Both are general hospitals locally known for their OB/GYN and Chinese traditional medicine specialties.
Located in the central region of the country, Suzhou Eurasia Hospital has 30 hospital beds and 42 employees, including 11 doctors and 12 nurses.