Paragon Care to Pay $70M for Indonesian Aesthetics Leader Haju Medical
Paragon Care Limited is set to acquire Indonesian medical aesthetics leader Haju Medical for A$70 million, aiming to boost its footprint across Asia Pacific and accelerate growth in the aesthetics sector.
- Acquisition of 100% shares in PT Haju Medical Indonesia for A$70 million
- A$30 million upfront payment with balance contingent on EBITDA targets over two years
- Haju Medical reported A$30 million revenue and A$7.7 million EBITDA in FY24
- Deal expected to be earnings accretive for Paragon Care in FY26
- Funding secured through existing working capital facilities and surplus cash
Strategic Expansion into Indonesian Aesthetics Market
Paragon Care Limited (ASX – PGC) has announced a significant move to deepen its presence in the Asia Pacific healthcare sector with the acquisition of PT Haju Medical Indonesia. The A$70 million deal, structured with an upfront payment of A$30 million and the remainder contingent on future earnings, marks a strategic expansion into the fast-growing medical aesthetics market in Indonesia.
Haju Medical, established in 2014, is a well-regarded provider of medical aesthetic services and technology, supporting clinics and dealers with expert-led workshops and a robust supply chain anchored by a buying house in South Korea. With 103 employees primarily based in Indonesia, Haju has built a strong regional reputation and a comprehensive footprint that complements Paragon Care’s existing operations in Thailand and emerging aesthetics businesses across Australia, New Zealand, the Philippines, Vietnam, and Japan.
Financials and Funding Structure
For the financial year ending December 2024, Haju Medical reported revenues of A$30 million and an EBITDA of A$7.7 million, underscoring its profitability and operational strength. Paragon Care expects the acquisition to be earnings accretive by FY26, signaling confidence in the integration and growth potential of the combined businesses.
The acquisition will be funded through a combination of previously announced working capital facilities, NZ$12 million in New Zealand and US$17 million in Thailand, alongside surplus cash reserves. This financing approach also supports Paragon Care’s recent Somnotec acquisition, reflecting a broader strategy of targeted investments to build scale and capability in key healthcare segments.
Integration and Future Growth Prospects
Paragon Care’s CEO, Carmen Riley, highlighted the complementary nature of Haju Medical’s business model and the importance of retaining current CEO Jay Won to ensure a smooth transition. This continuity is expected to facilitate seamless integration and support Paragon Care’s ambitions to accelerate growth across Asia.
Completion of the acquisition is anticipated around 30 January 2026, subject to customary conditions including regulatory approvals in South Korea and Indonesia, as well as change of control consents. These steps underscore the complexity of cross-border healthcare deals but also the strategic value Paragon Care places on expanding its aesthetics portfolio in the region.
Overall, this acquisition signals Paragon Care’s commitment to strengthening its position as a leading healthcare provider in the Asia Pacific, leveraging regional expertise and expanding its product and service offerings in a dynamic market.
Bottom Line?
Paragon Care’s acquisition of Haju Medical sets the stage for accelerated growth in Asia’s booming medical aesthetics sector, but execution risks remain as regulatory approvals and integration unfold.
Questions in the middle?
- Will Haju Medical meet the EBITDA targets required for full payment over the next two years?
- How will Paragon Care manage integration challenges across diverse Asian markets?
- What impact will this acquisition have on Paragon Care’s overall profitability and market share in FY26 and beyond?
