Estia Health to acquire two aged care homes in regional Victoria
SYDNEY, AUSTRALIA: Estia Health Limited (ASX: EHE), a leading provider of residential aged care services in Australia, has announced that it has signed binding agreements to acquire two aged care homes in regional Victoria from Royal Freemasons Limited, a not-for-profit organisation that operates retirement living and aged care facilities.
The two homes are located in Kangaroo Flat – Bendigo and Benalla, and have a combined capacity of 264 operating places. The homes were completed in 2017 and 2019 respectively, and offer high quality modern and scalable aged care services. The total net cash consideration for the acquisition is expected to be about $17.3 million (excluding stamp duty and transaction costs), which will be funded from the Group’s existing debt facilities. The transaction is subject to customary closing conditions and is expected to be completed in early October 2023.
As part of the acquisition, Estia Health will consolidate its existing operations in Bendigo and Benalla, and relocate its residents and employees from its Long Gully and Benalla homes to the newly acquired homes. The consolidation will ensure that high quality aged care in modern homes continues to be provided in regional communities, and will increase the occupancy of the acquired homes to near f, ull capacity.
Estia Health CEO, Sean Bilton, said: “We are proud to continue to be part of both the Bendigo and Benalla communities and to be able to increase our commitment to regional Victoria with the addition of a further 150 residential aged care places. The consolidation of the Estia Health and Royal Freemasons homes at these locations will ensure that high quality aged care in modern homes continues to be provided in regional communities. In bringing together both our residents and employees our focus will be on ensuring a seamless transition of service while ensuring the individual needs of residents remain paramount.”
Estia Health is a leading provider of residential aged care services in Australia, with 69 homes across four states and territories, and over 6,000 residents. Estia Health’s mission is to enrich and celebrate life every day by providing quality care and support for older Australians.
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