SAINT BELLA (ASX: 02508) has announced the completion of a strategic acquisition, purchasing a minority stake in the postnatal care center business of Wuhan Freyja Health Management Co., Ltd. from several independent third-party sellers for a total consideration of approximately RMB 22.4 million.

The acquired interests comprise: (i) a 30% equity stake in Wuhan He'an Maternity Care Co., Ltd.; (ii) a 30% stake in Wuhan Chenyue Maternity Care Co., Ltd.; (iii) a 40% stake in Wuhan Jiayuehui Health Consulting Co., Ltd.; and (iv) a 40% stake in Wuhan Fenghua Health Consulting Co., Ltd., collectively referred to as the "Target Companies".

Pursuant to the acquisition agreement, the group has the right to appoint a majority of the directors to the boards of Wuhan He'an Maternity Care, Wuhan Chenyue Maternity Care, and Wuhan Jiayuehui Health Consulting. Consequently, following the completion of this acquisition, the financial performance of these three companies will be consolidated into the group's financial statements.

The agreement also stipulates that if the Target Companies achieve mutually agreed performance targets within a specified period, the company has the right to require the sellers to sell additional equity in the Target Companies to the group. This further acquisition would be valued at the same price-to-earnings (P/E) multiple as the initial transaction, potentially increasing the group's shareholding in the relevant Target Companies to approximately 60% to 80%.

Freyja was established in 2013 and is a leading brand in the high-end maternal and infant care industry in the Wuhan region. It operates three directly managed stores in Wuhan's core commercial districts, featuring over 160 postnatal care suites. The brand's average customer transaction price is nearly RMB 50,000, and it has served nearly ten thousand high-net-worth families, establishing a solid reputation and strong regional brand influence in Wuhan's premium postnatal care market.

This acquisition represents another significant step under the group's dual-drive strategy of "organic growth + external mergers and acquisitions." It follows the 2022 acquisition and integration of the women's health brand Guanghetang, the 2023 acquisition and restructuring of Shanghai Yuezi Pavilion, and the merger and integration of eight postpartum care suppliers in core regions such as the Yangtze River Delta and Pearl River Delta. This move officially extends the group's nationwide service network to cover the key central China region.

The board of directors believes this acquisition aligns with the group's overall development strategy and is conducive to further consolidating its leading position in the postnatal care industry in China and Asia. With the continuous integration of high-quality regional assets, the deepening release of operational synergies, the accelerated network effects of the brand portfolio, and the rapid expansion of its global footprint, the group's main business is expected to achieve enhanced economies of scale and profitability, opening broad prospects for long-term value growth for shareholders.