Paragon Care Acquires Haju Medical for $70M as Asia Aesthetics Push Accelerates

Paragon Care (ASX: PGC) is betting big on Asia. The healthcare distributor, currently trading near its 52-week lows around $0.29, has struck a $70 million deal to acquire Haju Medical, an Indonesian aesthetics business that sells devices and injectables to dermatologists and cosmetic surgeons. This is the company’s second acquisition in just four weeks, signalling management is serious about building a regional platform while the share price remains depressed.
What makes this deal interesting isn’t just the expansion into Indonesia; it’s how Paragon has structured the purchase. The company will pay $30 million upfront, with the remaining $40 million spread over two years and tied to performance targets. In simple terms, if Haju doesn’t hit its profit goals, Paragon doesn’t pay the full price. We think that’s a sensible way to protect shareholders from overpaying.

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Paragon Care Targets Indonesia With Disciplined Deal Structure

Haju Medical looks like a solid business. In 2024, it made $30 million in sales and $7.7 million in profit (before interest, tax, and depreciation). That’s a 26% profit margin, which is quite strong for a distribution company and shows it runs efficiently.
The company is valued at about 9 times its earnings, which seems fair. In healthcare, good businesses often sell for 10–12 times earnings, so this price looks attractive.
Indonesia adds to the appeal: it has over 270 million people and a fast-growing middle class that is spending more on beauty and aesthetic services.

Key deal details investors should note:

• Paragon Care is funding the acquisition through working capital facilities in New Zealand and Thailand, plus existing cash reserves
• Haju’s CEO, Jay Won, is staying on to help with integration, which should ensure operational continuity
• Completion is expected by January 30, pending Korean regulatory approval
• Management expects the deal to add to earnings by FY26, meaning it should start contributing relatively quickly

Asia Platform Takes Shape With Back-to-Back Deals

Paragon Care has just bought Singapore’s Somnotec Group for $28 million, and now it’s moving quickly with another deal. These acquisitions show that management sees big opportunities in Southeast Asia’s healthcare distribution market, which is still fragmented.
Paragon now operates in Thailand, Australia, New Zealand, the Philippines, Vietnam, Japan, and soon Indonesia. The aesthetics market across Asia is booming, driven by rising incomes and changing beauty standards. If Paragon can successfully integrate these businesses, it could unlock meaningful growth beyond its traditional Australian base.
That said, we think investors should be mindful of execution risk. Integrating one business is hard enough. Doing two at once stretches management attention and increases the chance that something goes wrong.

The Investor’s Takeaway

We believe this is a well-structured deal, but investors should weigh both the opportunity and the risks. On the positive side, the earnout structure limits downside if Haju underperforms. The target business has strong margins and operates in a growing market. Management retention should help ensure a smooth transition.
However, the stock has been weak this year, and the back-to-back acquisitions increase integration risk. Debt funding adds leverage to the balance sheet, and at roughly 29x earnings, the valuation isn’t cheap for a company still proving its strategy.
For existing shareholders, patience makes sense while integration plays out. For those considering a new position, it may be worth waiting to see early execution before committing capital. If management delivers on both Somnotec and Haju, this could mark a turning point. If they stumble, the share price weakness may continue.