Estia looks to buy Allity – an additional 44 care facilities

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The talk on the street is that Estia Aged Care has made approaches to buy Allity Aged Care, a deal that could be worth $1 billion.

Allity is the creation of the private equity firm Archer Capital. In April 2013 they purchased 31 aged care facilities from Lend Lease who got hold of them when they acquired the retirement village operator Babcock & Brown Communities. Archer paid $270 million.

Estia was just 10 aged care facilities in Victoria when Quadrant Private Equity purchased them also in 2013 and built them to 52 locations by acquisition. They listed on the stock exchange last December for $1.2 billion.

Estia is led by Paul Gregersen, the ex-CEO of Bupa. He has brought most of his Bupa team with him. Quadrant’s strategy is being led by Marcus Darville. He also achieved significant growth – and profit – in NZ when he bought Somerset retirement villages and sold four years later for approximately $243M.