Estia Health’s new owner “to build” on positive momentum
Estia Health changes hands in $2.5 billion mega-deal
- Huge transaction: Stonepeak acquires majority stake in Estia Health
- Bain cashes in: Deal reportedly values operator at $2.5 billion
- Rapid growth: Estia expanded from 6,700 to 9,250 places since 2023
- Sector momentum: Investors continue piling into aged care real estate
The country’s second largest aged care operator was sold by Bain Capital yesterday afternoon (27 May).
The deal, reported by multiple news media outlets as $2.5 billion, delivers a substantial return for Boston-based Bain Capital, which acquired Estia Health in December 2023 for $838 million.
Stonepeak, an investment firm specialising in infrastructure and real assets, has entered into a definitive agreement to acquire a majority stake in Estia Health. The transaction marks a second investment for Volarae Living, Stonepeak’s social infrastructure platform in Australia and New Zealand, following its February 2026 investment in Aura Holdings.
“We are thrilled to support Estia Health , a high-quality provider, build on its positive momentum, and even better serve older Australians,” said Darren Keogh, Senior Managing Director at Stonepeak.
Stonepeak’s consortium partner in the transaction is Axight Capital Limited. The minority stake in Estia Health represents Axight’s second investment in Australia, further deepening its focus in the Asia Pacific Region.
When Bain Capital acquired Estia Health for $838 million, it valued the company at around $280,000 per bed. At the time, The Weekly SOURCE described the sale as “rolled gold” for Bain. Today, the cost of building a new aged care bed is higher than $500,000.
Since 2023, Estia has grown significantly – from 73 homes with approximately 6,720 places to 93 homes and approximately 9,250 places today.
“We look forward to working with Stonepeak, whose complementary experience and long-term investment approach support our strategy and build on our strong foundations. It remains our privilege to care for older Australians and support residents and their families at an extre mely important time in their lives – and that will not change with our ownership,” said Sean Bilton, CEO and Managing Director of Estia Health.
“Our ambition is for Estia Health to lead the sector and deliver the quality-of-care older Australians deserve.”
Bain Capital’s ownership of Estia Health has been led by Australian-based Partners Mike Murphy, Charles Lawson, and Grace Mollard.
They said: “The significant increase in both the number of homes and residents served reflects our conviction in Estia Health’s mission and our commitment to making a genuine difference in the lives of older Australians and their families.
“We are proud to leave Estia Health an even stronger and more resilient business than when we first partnered together. The company is exceptionally well positioned to continue to play a leadership role in a critical sector. We have great confidence in the team and in Estia Health’s ability to continue delivering for residents, families, and the communities it serves.”
The transaction is expected to complete in late 2026, subject to standard regulatory approvals.
