Luye Medical Agrees to Acquire Australia's Third Largest Private
Hospital Group HEALTHE CARE
[December 7, 2015, Hong Kong] Luye Medical Group Co.(“Luye Medical”), a
wholly-owned subsidiary of Luye Group Ltd. (the “Group”), recently announced
that it has entered into an agreement with Australia’s Archer Capital Fund to
acquire Australia’s third largest private hospital group, Healthe Care Australia Pty
Limited (“Healthe Care”), with a transaction amount of US$ 688 million.
Headquartered in Singapore, Luye Group Ltd. is a multinational company
specializing in investment in healthcare related areas and medical industry
development. The Group has three business units, namely Luye Pharma (a Hong
Kong listed company, Stock Code: 2186.HK), Luye Medical and Luye Investment.
This acquisition is a significant breakthrough for the business of Luye Medical,
signalling Luye Medical’s major push into the field of international medical
services as well as transforming it into one of China's largest comprehensive
private medical groups with international presence.
Healthe Care is the third largest private hospital group in Australia which owns 17
medical facilities in Australia’s major cities and districts, with a total of around
2,000 beds, 50 operating rooms and 4,500 employees. Its annual revenue is
approximately RMB 3 billion. The 17 hospital sites of Healthe Care consist of 4
categories: tertiary hospitals, mental health hospitals, specialist hospitals and
regional hospitals. These hospitals provide specialty services in gynecological,
cardiovascular, neuropsychiatric, oncology, rehabilitation, maternity and general
medical services, etc and have top level treatment technology and equipment as
well as high quality medical professionals These hospitals also provide overnight
surgery and day surgery, offer innovative therapies in orthopedics and mental
health and other fields, and provide professional rehabilitation services for
patients post surgery, injury, cardiac and stroke .
Steve Atkins, CEO of Healthe Care, said that the fact that Luye Medical chose
to invest in Healthe Care underlined the recognition of its high quality medical
services. “During the course of communicating with and understanding the
management of Luye Medical, I was deeply moved by Luye’s vision and sincerity .
I strongly believe that Luye Medical will continue to support the business
development of Healthe Care. I look forward to working with the management of
Luye Medical and learning from each other in medical specialization. I hope our
doctors and staff could work hand-in-hand with our partners from Luye Medical to
provide medical services of the highest standards to more patients in Australia,
China and other countries in the world. ”
Luye Medical China President Mr. Guo Wenfei said that this cross-border
acquisition was an important step of Luye Medical’s international strategic
roadmap. Luye Medical will work with Healthe Care to devise a high-quality
hospital operation model with Chinese features to serve China’s middle class to
high-end customers, leveraging on Australia’s specialist skills and experiences.
Going forward, Luye Medical plans to establish healthcare facilities in areas such
as orthopedics, oncology, cardiology, neurology, ambulatory surgery centers, etc.,
to expand its presence in healthcare services in China taking advantage of
favorable national policies that encourage private medical investment and other
significant strategic opportunities. Mr. Guo also stated that over the next two
decades Luye Medical will utilize the Australian brand to build and develop
medical services chains and network for the mid / high end markets, from major
cities to third-tier cities in China, in order to provide world-class and high-standard
medical services and technologies to the majority of China’s patients.
Luye Group Chairman Mr. Liu Dianbo said that Healthe Care represented a
rare opportunity for Luye Medical to acquire a medical group of such scale. Mr. Liu
said, “We have the capabilities and confidence to continue to expand the
business of Healthe Care and maintain its leading position in the Australian
healthcare market. We will adhere to the service principle of “patient comes first”
and remain devoted to providing patients with the best healthcare services. I
strongly believe that Healthe Care’s world-class medical system, as well as its
standards of patient care and operations will serve as a strong platform for Luye
Medical to build and develop its medical service system of excellence in China
and worldwide.”
Mr. Liu added, “It has been reported that this transaction may represent the
largest overseas acquisition by a Chinese private medical group and the largest
medical project invested by a Chinese enterprise in Australia. This international
acquisition has a great significance for Luye Medical Group’s future business
growth and expansion. It will largely enhance the business development of the
Group in the Chinese Market. Through learning and introducing advanced
international medical technology, operation model and management system, Luye
Medical will introduce high standard and international medical service experience
to Chinese people, while meeting people’s increasing demand for better health
care, so as to make greater contributions to improving people’s livelihood and
promoting comprehensive social development. Luye Group will firmly uphold our
mission of ‘Professional technology serves human health’, and strive to be the
most respected world-leading company in the medical health care field in the
future.
~End~
About Luye Group Ltd.
Founded in 1994, Luye Group has its China headquarters in Shanghai and global
headquarters in Singapore. It has three major business segments, namely, Luye
Pharma (a Hong Kong listed company; Stock Code: 2186.HK), Luye Medical and
Luye Investment. It adopts “professional technology serves human health” as its
mission. In August 2015, Luye Group forayed into the field of precision medicine
through the acquisition of Vela Diagnostics, a DNA sequencing company in
Singapore. Established in 2011, Vela Diagnostics is a worldwide supplier of
integrated molecular diagnostic solutions. It offers automatic platform of both
Real-Time PCR and Next-Generation Sequencing, and comprehensive solutions
integrating equipment, reagent and data processing to clients, with a business
network across many countries and regions, including America, Europe and
Australia. In molecular solutions field based on PCR and NGS, Vela Diagnostics
has passed 27 CE-IVD (EU) tests and 19 TGA (Australia) tests, enjoying the
leading position in the industry.
About Luye Medical
Luye Group has started exploring the medical healthcare field since 2011. It then
officially established a medical industry division and rapidly expanded medical
business nationalwide. At present, Luye Medical has collaborated with several
internationally renowned medical specialist brands in countries like Korea and
Singapore. It has also set up its own development network in cities such as
Shanghai, Chongqing, Yantai and Wuhan, etc. Going forward, Luye Medical
Group plans to build specialty treatment centers related to cardiovascular,
orthopedics and oncology; while concurrently expand into constructing medical
complexes in selected cities in China and endeavor to becoming a world-class
medical services center.The rapid expansion of the business of Luye Medical will
also help Luye’s upgrading and development in pharmaceutical sector. The value
chain effect created by the mutual coordination and promotion not only provide
more high quality innovative medicine and health services but also provide more
reward to investors.
About Luye Pharma
As one of the business segments of Luye Group, Luye Pharma Group is a
research-driven pharmaceutical group; listed on the main board on Hong Kong
Stock Exchange in 2014, stock code: 2186.HK. It focuses on developing,
producing, marketing and selling innovative pharmaceutical products in the
therapeutic areas of oncology, cardiovascular, diabetes and central nervous
system. It is a leading innovative pharmaceutical company in China and has
reached advanced international standards in formulating new drug innovation
technology. It has a number of innovative microsphere delivery products which
have started clinical trials with US FDA. These products have obtained recent
breakthrough and therefore Luye Pharma is expected to be the first Chinese
pharmaceutical enterprise with new drugs entering the US market.