KUALA LUMPUR (April 21): Wastewater engineering and construction firm Salcon Bhd (KL:SALCON) is acquiring two dental companies for a combined RM9.86 million, marking a continued expansion of its healthcare division.
In a filing with Bursa Malaysia on Monday, the company said its indirect subsidiary, Bloom Healthcare Dental (Northern) Sdn Bhd, has entered into conditional share sale agreements to acquire 70% equity interests in Tria Dental Group Sdn Bhd and WS Dental Group Sdn Bhd.
The purchase consideration for Tria Dental is RM3.7 million, while WS Dental will cost RM6.16 million, with both deals to be settled fully in cash. Tria Dental, incorporated in 2022, operates a specialist clinic in George Town, Penang, while WS Dental runs two clinics in Penang and was established in 2015.
Salcon will also grant put options to the respective vendors, allowing them to sell their remaining 30% stakes in both companies within a five-year window, potentially making Tria Dental and WS Dental wholly-owned subsidiaries.
Salcon said the acquisitions form part of its ongoing strategy to grow its healthcare division, which was established in 2024 to diversify the group’s earnings base beyond its core water and infrastructure businesses.
According to the company, the addition of Tria Dental and WS Dental is expected to enhance its presence in the private dental healthcare market, particularly in Penang, complementing existing operations in the Klang Valley.
"This opportunity enables the group to further enhance and uphold competitive advantage within the overall healthcare sector. With the proposed acquisitions in hand, the group can potentially grow its revenue base and generate additional income streams, in parallel, achieve a broader customer reach through the expansion of their healthcare division," Salcon said.
The acquisitions include cumulative profit guarantees amounting to RM1.32 million for Tria Dental and RM2.2 million for WS Dental across the financial years ending 2026 and 2027.
Salcon said the acquisitions would be financed via shareholder loans and advances, and are targeted for completion in the second quarter of 2025.
Shares in Salcon ended half a sen or 1.56% lower at 31.5 sen on Monday, valuing the company at RM328.18 million.