Archer Capital seeks to sell its aged care provider Allity yet again

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Australian-owned equity company Archer Capital, which set up Allity Aged Care in 2013 after it paid $270 million for 30 care homes from Lendlease, wants to sell the business which has grown to 43 homes across NSW, Queensland, Victoria and South Australia.

Archer Capital has hired E&P Corporate Advisory for the sale of Allity, which has been on-and-off the market since the heady days of 2015 when Estia Health was keen to buy it for  around $1 billion.

The news follows ASX-listed Japara’s shareholders agreeing to sell its 50 aged care homes and two retirement villages for $1.40 a share to the Catholic Not For Profit Little Company of Mary Health Care Limited, known publicly as Calvary.

Also on the market are Victorian-based aged care operator Menarock Life, which is owned by Deloitte Private’s former Chief Operating Officer Craig Holland, and New Zealand aged care and retirement operator Heritage Lifecare, the third largest aged care provider across the Tasman Sea.

With the ageing population and the value of aged care homes still far below the highs of 2016, the assets would seem ripe for picking with equity firms known to be keen on diving into the sector.

The question is: will anyone take the plunge?