Aier Eye Hospital Group to Acquire Europe's Largest Listed Ophthalmic Chain Clinica Baviera for €152 Million

VCBeat has learned that on April 11, Aier Eye Hospital issued an announcement regarding a significant matter. The company intends to launch a voluntary tender offer through its indirectly wholly-owned subsidiary, Aier International (Europe) Limited, to the shareholders holding 100% of the shares of Clínica Baviera, S.A., at an offer price of €10.35 per share. According to the “irrevocable commitment to transfer equity” between Aier International (Europe) and six shareholders who collectively hold 69.353% of the target company’s equity, these shareholders will transfer their 59.353% equity stake to Aier.

The three founders and core executives of the target company have committed not to accept the current offer for their remaining 10% equity stake, which may be transferred to Aier Europe after three years from the completion of the current offer under agreed-upon conditions. Therefore, the consideration for the equity corresponding to this offer (i.e., the 90% equity stake) is approximately €152 million, with the actual transaction consideration depending on the final acceptance of the offer. Aier Eye Hospital resumed trading on April 12, 2017.

The announcement stated that Clínica Baviera, S.A. is the largest publicly listed chain of ophthalmic medical institutions in Europe, with decades of development history. It employs nearly 300 ophthalmologists and optometrists, including a core group of renowned specialists such as its founder, Dr. Julio Baviera, who enjoy high reputations within the European ophthalmology community.

Clínica Baviera, S.A. wields extensive influence across the European ophthalmology sector and the broader medical field. As a specialized chain of ophthalmic healthcare institutions, it currently operates 76 facilities in Spain, Germany, Italy, and other countries, ranking first in market share for refractive surgery services in both Spain and Germany.

According to the annual report released by Aier Eye Hospital on April 5, the company achieved a net profit of RMB 567.1115 million during the reporting period, representing a year-on-year increase of 29.90%. The net profit attributable to shareholders of the parent company amounted to RMB 557.4672 million, up 30.24% from the same period last year. Notably, refractive surgery generated revenue of RMB 1.1412866 billion, a year-on-year increase of 35.94%, making it the largest source of revenue. Clearly, the acquisition of Clínica Baviera, S.A. aligns with the company’s current strategic positioning and offers promising revenue prospects.

In recent years, Aier Eye Hospital has accelerated the refinement of its tiered chain model, advancing the construction of a medical network with a focus on prefectures and county-level cities. Multiple provinces and regions have gradually formed an integrated network, significantly enhancing resource sharing and enabling patients at the grassroots level to access high-quality ophthalmic care locally. Meanwhile, the company has expedited the implementation of its internationalization strategy. For instance, it established a wholly-owned subsidiary in the United States with $50 million in self-raised funds to serve as a global platform for resource integration, embodying the philosophy of sharing global ophthalmic expertise and promoting the worldwide layout of the ophthalmic ecosystem. Additionally, Aier has launched the Aier Global Technology Innovation Investment and Incubation Fund, serving as an incubation platform to foster an innovation and entrepreneurship ecosystem in ophthalmology and visual sciences.

Regarding this tender offer, the reporter interviewed Wu Shijun, Board Secretary of Aier Eye Hospital. She stated that Aier Eye Hospital and Clínica Baviera share similar cultural values, and both parties have maintained long-term, smooth communication, highly recognizing each other’s vision and strategy. The core management team and physicians will remain in their positions post-acquisition, laying a solid foundation for successful integration and growth. Meanwhile, this acquisition is not aimed at delisting the target company. Upon completion, Aier Eye Hospital is expected to become the only ophthalmic healthcare institution listed both in China and overseas, working together to set a global industry benchmark and benefit eye disease patients worldwide.

As early as December 2015, Aier Eye Hospital proposed to acquire equity assets for HK$212 million, including a proposed acquisition of 100% equity interest in Asia Medical Group Limited for HK$182 million. In addition, the company planned to pay HK$30 million to facilitate Asia Medical Group’s acquisition of a 20% stake in Asia Eye Care Limited held by Maotian Limited. Upon completion of the acquisition, Hong Kong Aier would hold 100% equity interest in Asia Medical Group, which in turn would hold an 80% stake in Asia Medical Services Hong Kong Limited and an 85% stake in Asia Eye Care Limited.

Among them, Asia Medical Group’s subsidiary, Asia Medical Services Hong Kong Limited, operates two ophthalmology clinics in Hong Kong, China, primarily providing surgical services such as laser vision correction and cataract treatment. Asia Eye Care mainly offers comprehensive professional eye examinations (including anterior segment and fundus) and medical optometry services, with five eye examination and medical optometry centers currently established in Hong Kong.

On November 30, 2016, Aier Eye Hospital Group announced the establishment of a wholly-owned subsidiary in the United States, “Aier (U.S.A.) International Holdings Inc.,” with $50 million in self-raised funds. The company’s business scope includes hospital and clinic management, equity investments in pharmaceutical and medical projects, consulting services, and other lawful activities permitted under the Delaware General Corporation Law. This marks another overseas venture for Aier Eye Hospital Group in the highly market-driven U.S. healthcare sector, following the establishment of its Hong Kong subsidiary.

In January 2017, Aier Eye Hospital’s U.S. subsidiary, U.S. Aier, proposed to acquire a 75% equity stake in AW Healthcare Management, LLC held by Dr. Ming Wang for $18 million. At the closing of the transaction, Dr. Ming Wang will inject his wholly-owned ophthalmology center into the management company.

AW Healthcare Management, LLC isA private ophthalmic medical center founded by Professor Wang Mingxu, a globally renowned expert in refractive surgery and corneal disease treatment, possesses cutting-edge global refractive surgical techniques and comprehensive corneal imaging technologies. Primarily serving high-end clients across the United States and worldwide, it stands as one of the global pinnacles of ophthalmic surgical expertise. This acquisition introduces its advanced surgical techniques, premium service models, and management experience, facilitating the development of the high-end ophthalmology sector in China.Surgical Market.

The renewed acquisition of Clínica Baviera, S.A. has a clear objective: to enhance the brand value of Aier Eye Hospital and, in turn, boost the growth potential of its comprehensive ophthalmology business lines. Professor Tang Shibo, Dean of the Aier Eye Hospital College at Central South University, doctoral supervisor, and President of Aier Eye Hospital Group, believes that Clínica Baviera, S.A. is a highly reputable chain medical institution in the field of ophthalmology. With its medical technology and service quality ranking among the best globally, it stands as a prestigious representative of high-end ophthalmic healthcare in Europe. By introducing an international team of experts from Europe, this move will accelerate Aier Eye Hospital’s rapid development of premium services, thereby meeting the growing demand for high-end medical care.

Chen Bang, Chairman of Aier Eye Hospital Group, stated that this transaction is unprecedented in the international ophthalmology community, both in terms of scale and strategic layout. It holds significant milestone importance for the development of Aier Eye Hospital, representing a major step forward in practicing the philosophy of “Sharing Global Ophthalmic Wisdom” and establishing a new platform for building an eye health ecosystem. This move will instantly secure Aier’s leading position in Europe, establish a strategic framework for global coordinated development, accelerate the global integration of clinical, scientific research, and talent resources, build a high-level world-class ophthalmic platform, and substantially enhance its comprehensive competitiveness.

Aier Eye Hospital and Clínica Baviera are the largest ophthalmic healthcare providers in China and Europe, respectively. This acquisition marks another significant step in Aier Eye Hospital’s globalization strategy, following its successful mergers and acquisitions of leading ophthalmic centers in Hong Kong and the United States. It will enable the company to master cutting-edge ophthalmic technologies and service systems, build the world’s largest group of ophthalmologists, and undoubtedly further expand Aier’s leading advantage in the global ophthalmic industry.