This article is from the Australian Property Journal archive
LISTED aged care provider Estia Health has acquired the private family-owned Kennedy Health Care Group.
Established in 1969, Kennedy’s portfolio comprises of eight facilities and 959 places located in metropolitan south and west Sydney and Wollongong.
The acquisition will see Estia’s total operating places increases to 5,690 by the end of FY2016 with the group buying 1,690 new operating places so far for $399.4 million.
The acquisition also brings a number of brownfield and greenfield development opportunities and Estia will commit approximately $88.4 million of capital over five years into the redevelopment and expansion of some of Kennedy’s facilities.
Estia CEO’s Paul Gregersen said the acquisition is in line with its stated strategy of acquiring one or more medium-sized groups as the group works towards the goal of reaching 10,000 beds by FY2020
Estia will fund the acquisition through a combination of existing debt facilities and the issuance of approximately $50 million in Estia ordinary shares. Estia will issue 6,631,300 shares at $7.54 per share to the Kennedy family, based on the 10-day volume weighted average price (VWAP) per Estia share up to and including 4 December 2015
Kennedy’s chairman, Dr Gary Weiss will join the Estia board as a non-executive director. As part of the integration process, Mark Kennedy will remain as managing director of Kennedy through to the end of FY2016. Thereafter he will work alongside Estia development director Peter Hamilton in a development role.
Estia has also updated its guidance for FY2016, with pro forma NPAT now anticipated to be more than 25% above that of the prior year.
Australian Property Journal
