Catalist-listed manufacturing company Metal Component Engineering (MCE) is acquiring an 85.07% stake in healthcare business Gainhealth for $4.25 million.

  MCE has entered into a sale and purchase agreement (SPA) with three individuals to acquire 1,715 ordinary shares in Gainhealth. $3.8 million of the consideration will be settled via cash, while $481,000 will be settled through the issuance of 13 million new ordinary shares in MCE to the vendors at an issue price of 3.7 cents per share.

  The vendors will also be entitled to a performance bonus amounting up to $5.1 million, should Gainhealth achieve a valuation of $11.6 million within 12 months from the SPA&rsquo s completion date. Of the amount, up to $4.4 million will be payable in cash, with the remainder to be settle via the issuance of up to 20 million new ordinary shares in MCE.

  The acquisition will be funded through the MCE&rsquo s internal resources.

  Gainhealth is a healthcare business that operates a general practitioner clinic with an in-house pharmacy known as Gainhealth Clinic and Homecare. The business also has an e-commerce arm that operates multiple online e-commerce portals. It currently has a team of 15 staff across Singapore and Malaysia.