Heritas Capital announces successful sale of majority-owned Malaysian private hospital to IHH Healthcare, delivering ~3x returns on investment and seeks new M&A deals

Heritas Capital announces successful sale of majority-owned Malaysian private hospital to IHH Healthcare, delivering ~3x returns on investment and seeks new M&A deals

Heritas Capital is pleased to announce the completion of the acquisition of Timberland Medical Centre (TMC) by IHH Healthcare through Pantai Holdings Sdn Bhd (its indirect wholly-owned subsidiary), which was announced last August (see Malaysia’s IHH Healthcare to buy Bedrock Healthcare for RM245 million).

TMC, a Heritas majority-owned portfolio company since 2016, is a leading private medical centre with 82 beds, widely respected and trusted to be a hospital of choice known for its quality, innovation, and compassion since its founding 30 years ago. The hospital offers access to quality and affordable medical treatments to hundreds of thousands of patients and their families each year, many coming from underserved areas across East Malaysia and Borneo.

The successful exit marks the culmination of years of value and impact generation spearheaded by Heritas which completed the M&A transaction in 2016 under its Private Equity fund. As the major shareholder of TMC, Heritas collaborated with fellow stakeholders to put in place effective board and medical governance as well as a capable management team which together steered TMC towards achievement of record revenues and profits following a resurgence of patient load post-Covid-19. Beyond building up its financial strength, TMC also achieved significant recruitment of doctors in new sub-specialties, improvement of facilities, installation of next-generation equipment, and approved building plans for a new 200-bed hospital which will further scale its impact as a leading healthcare player in the coming years.

Heritas’ CEO and Executive Director Wai Chiew CHIK (who also served as TMC’s board chairman in the past 7 years) said, “Heritas is honoured to have stewarded TMC ‘s growth and developments, in close collaboration with the founding and next generation doctors, co-investors, management and staff, since 2016. We are proud to see the TMC family showing remarkable resilience throughout the challenging Covid-19 years and again, during the overwhelming post-pandemic recovery, while not losing sight of longer-term growth planning for the next 30 years with the new 200-bed facility approved for development. We are also pleased to work closely with IHH Healthcare, Asia’s leading healthcare hospital group, to plan and execute a smooth and responsible transition of ownership and look forward to TMC achieving even greater success post-acquisition. Having delivered ~3x returns on this investment, Heritas will continue to seek new M&A opportunities in Asia under Heritas Growth Fund III where we see our domain expertise can repeatedly help scale promising growth business to deliver greater impact.”


About Heritas Capital

Heritas Capital is a Singapore-based private equity and venture capital investment firm that invests in fast-growing companies across the healthcare, education, environment, and technology sectors. Guided by its investment philosophy, “Invest with Purpose, Impact Across Generations”, Heritas Capital backs innovative companies to become emerging champions and drive inclusive growth that improves the lives of local communities and the environment while delivering sustainable returns to investors.