Ascend Partners, the private equity firm that acquired Seoul Medical Group (SMG), is pursuing another merger and acquisition (M&A) involving Hanmi Medical Group (KAMG), another Korean-American medical group.
According to the Material Change Notice (MCN) submitted to the Office of the Hawaii County Attorney (OHCA) on November 20, 2024, Ascend is in the process of acquiring KAMG through Swan Practice Holdings, which owns SMG. Swan is wholly owned by Dr. Richard Park, a co-founder of Ascend.
Once this M&A is finalized, Ascend will effectively own both KAMG and SMG. Industry insiders noted that companies are required to report transactions to state authorities if the value exceeds $25 million.
It remains unknown whether Ascend will merge SMG and KAMG into a single medical group after acquiring KAMG or operate them separately.
A KAMG official stated, “The escrow process is currently underway,” adding, “but we don’t know when it will be completed.” Another director commented, “The key aspects of the acquisition negotiations have largely been settled, but we are still working through some differences of opinion.” They added, “The negotiation process is more complex than expected, but overall, it is progressing positively.”
In response, Ascend remained tight-lipped, stating, “We will make an official announcement once everything is finalized, just as we did when we acquired SMG.”
The acquisition process is somewhat complex. King Practice Holdings, established by Richard Park and Ascend’s co-CEOs specifically for the acquisition of KAMG, will first purchase KAMG. Then, Swan, the owner of SMG, will absorb King Practice Holdings.
Some KAMG patients have expressed concerns about potential major changes or disruptions to medical services. However, the MCN submitted stated that KAMG has 20,000 patients and assured that there will be no changes to the medical services provided after the merger.
BY HYOUNGJAE KIM [kim.ian@koreadaily.com]
