PMG Healthcare Eyes Acquisitions Amid Market Consolidation
Deal News | Mar 30, 2025 | Ikhlas Capital
Sarawak-based PMG Healthcare, a leading primary integrated healthcare provider in East Malaysia, is planning to expand its presence in Peninsular Malaysia by acquiring entities in the retail pharmacy and general practitioners sectors, amidst increasing market consolidation. The healthcare group recently partnered with Ikhlas Capital, a private equity firm led by Tan Sri Nazir Razak, to leverage its acquisition experience and network. Despite the crowded market, PMG Healthcare's founder, Dr. Chieng King Chong, believes the group's integrated primary care model provides a competitive advantage. The acquisition strategy is supported by Ikhlas Capital's RM74 million investment in PMG Healthcare. In 2024, PMG acquired AM PM Pharmacy, adding 46 outlets to its network. The company aims to add 30-50 new outlets annually. Ikhlas Capital's investment, based on PMG's RM500 million revenue, represents a valuation of 6.75 times revenue. PMG Healthcare plans to use this investment to aid its expansion strategy in Malaysia and potentially other parts of ASEAN.
Sectors
- Healthcare
- Private Equity
- Retail Pharmacy
Geography
- Malaysia – PMG Healthcare is based in Sarawak, Malaysia, and plans to expand in Peninsular Malaysia. Ikhlas Capital is also investing in the region.
- ASEAN – Ikhlas Capital, backed by ASEAN investors, plans to eventually expand PMG Healthcare's operations within the ASEAN region.
Industry
- Healthcare – This sector is relevant as PMG Healthcare operates within the healthcare industry, focusing on pharmacies, clinics, and dental services.
- Private Equity – Ikhlas Capital, a private equity firm, is involved as an investor in PMG Healthcare's expansion strategy.
- Retail Pharmacy – Market consolidation in the retail pharmacy sector is a key driver for PMG Healthcare's acquisition strategy.
Financials
- RM74 million – Investment by Ikhlas Capital in PMG Healthcare.
- RM500 million – PMG Healthcare's annualised turnover rate.
- RM850 million – Valuation of Caring Pharmacy Group Bhd acquisition by BIG Pharmacy.
- RM637.5 million – 7-Eleven's 75% stake in Caring Pharmacy Group Bhd sold to BIG Pharmacy.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| PMG Healthcare Sdn Bhd | Target Company | Company | Largest primary integrated healthcare provider in East Malaysia. |
| Ikhlas Capital | PE Investor | Company | Private equity firm providing investment for PMG Healthcare's expansion. |
| Dr. Chieng King Chong | Founder and Chairman | Person | Founder and Chairman of PMG Healthcare. |
| Tan Sri Nazir Razak | Chairman | Person | Chairman and co-founder of Ikhlas Capital. |
| BIG Pharmacy Healthcare Sdn Bhd | Other Company | Company | Acquired Caring Pharmacy Group Bhd as part of the market consolidation. |
| Compass Consulting & Services | M&A Advisor | Company | Boutique advisory firm managing PMG Healthcare's M&A initiatives. |
| Tay Ek Meng | Managing Director | Person | Managing director of Ikhlas Capital. |