Q & M Dental Group (Singapore) Limited Plans to Acquire Australian Dental Clinic Group for 708 Million RMB

Image source: Q & M Dental Group (Singapore) Limited

DentalGoodNews | On March 11, 2026, Singapore-listed dental services group Q & M Dental Group (Singapore) Limited (hereinafter referred to as "Q&M Dental Group") announced that it has signed a non-binding Memorandum of Understanding (MOU) to acquire 100% equity of an Australian dental group (hereinafter referred to as the "Australian Target Group") for AUD 144.5 million (approximately RMB 708 million).

The Australian Target Group operates over 40 dental clinics across New South Wales, Victoria, Queensland, Tasmania, and the Australian Capital Territory, employing approximately 120 dentists, primarily general practitioners. It offers services including General practice, Orthodontics, cosmetic dentistry, and implants. Q&M Dental Group is a Singapore-headquartered listed dental services group whose business has expanded to Mainland China, Malaysia, and other Asia-Pacific markets.

The total acquisition price is AUD 144.5 million, payable in three parts: Q&M Dental Group will inject AUD 30 million (approximately 21% of the total price, about RMB 147 million) into the Australian Target Group upon completion of the transaction, specifically for repaying its outstanding loans; pay AUD 59.5 million (approximately 41%, about RMB 292 million) in cash, of which AUD 40.75 million (approximately RMB 200 million) is due at completion, and the remaining AUD 18.75 million (approximately RMB 92 million) is payable one year later, contingent upon meeting the first-year profit guarantee target; and issue new shares worth AUD 55 million (approximately 38%, about RMB 269 million) to the seller at an issue price of SGD 0.70 per share (approximately RMB 3.77 per share), with the related shares subject to a 15-year Lock-up Period.

The seller has provided a 7-year profit guarantee: the Australian Target Group must increase its Net Profit After Tax (NPAT) from approximately AUD 11.7 million (about RMB 57 million) in Year 1 to approximately AUD 17.1 million (annual growth rate of 10%, about RMB 84 million) by Year 5, and maintain approximately AUD 17.1 million (about RMB 84 million) in each of Years 6 and 7. The seller must deposit AUD 8 million (approximately RMB 39 million) as a guarantee into an escrow account managed by Q&M Dental Group. If the first-year profit target is met, the guarantee amount can be reduced to AUD 5.5 million (approximately RMB 27 million).

According to previous reports by DGN, Q&M Dental Group announced in October 2025 its intention to acquire a large private dental chain in Thailand for approximately RMB 430 million. Q&M Dental Group plans to rapidly enter the Thai market by integrating the target company's existing clinic network, thereby avoiding the risks associated with starting from scratch. Both transactions are currently at the Memorandum of Understanding (MOU) stage.

According to the announcement, both parties have agreed to use their best efforts to finalize a formal agreement within one year from the signing date of the MOU. However, this acquisition is subject to approval under relevant Australian laws and regulations, as well as the completion of legal, financial, and operational due diligence on the Australian Target Group. Q&M Dental Group's Chief Financial Officer, Ng Sook Hwa, reminded shareholders that there is no certainty that this acquisition will be completed.