SYDNEY, Regis Healthcare has finalized a binding agreement to acquire the entirety of CPSM Pty Ltd (CPSM).
This strategic acquisition encompasses five premium residential aged care homes strategically located in South-East Queensland, comprising 644 beds, with four facilities in Brisbane and one on the Gold Coast.
The acquisition also encompasses a dedicated workforce of 800 employees.
CPSM reported robust financials for the fiscal year 2023, boasting an operating revenue of $67 million and an underlying EBITDA of $13 million. The net consideration for this acquisition stands at $74.2 million, with an FY23 EBITDA multiple of 5.7x and a net price per bed of $115,000.
Notably, the assumed RAD (Refundable Accommodation Deposit) liability at completion is estimated to be around $151 million. All acquired facilities are on a freehold basis.
The financing for this acquisition has been facilitated through Regis’s existing debt facilities, underscoring the company’s strategic and prudent financial management.
With the transaction slated for completion on December 1, 2023, Regis anticipates immediate earnings accretion in the fiscal year 2024, with a promising outlook for sustained growth in subsequent periods.
This move aligns with Regis’s commitment to expanding its aged care portfolio, further solidifying its position as a leader in the sector.
The acquisition of CPSM brings not only an increase in capacity but also valuable expertise and resources to enhance Regis’s ability to provide high-quality aged care services in the South-East Queensland region.