Estia reportedly unwilling to buy Allity and its 43 aged care homes for over $700M

Published on

Estia Health, which made just $1 million profit in FY21 before the one-off top-up of Federal Government ‘temporary funding and grants’ of $21 million, has reportedly looked at buying Archer Capital’s Allity but decided against making a bid.

Australian-owned Archer Capital is understood to have hired E&P Corporate Advisory for a sale of Allity’s 43 aged care homes in NSW, Victoria, Queensland and South Australia. It is not the first time Estia has looked at swallowing up Allity with talks taking place in 2015.

It is understood a sale price of over $700 million is being pitched for Allity. Archer Capital paid Lendlease $270 million for the aged care homes in 2013.

Catholic Not For Profit Calvary Healthcare’s takeover of ASX-listed Japara Healthcare, which was overwhelmingly voted for by shareholders last month, reflects the power of the Not For Profit sector.

The Australian’s Street Talk section reports that Not For Profit groups – such as Bolton Clarke, which bid for Japara – might be interested.

Before the Royal Commission into Aged Care Safety and Quality in 2018, private equity firm EQT held talks with Archer Capital about buying Allity, whose CEO is Tomás Chubb (pictured above).

Other aged care providers up for sale include Victoria-based BlueCross and Menarock Life.

Last year, private equity firm TPG Capital was believed to have looked at buying ASX-listed aged-care provider Regis Healthcare, while Washington H. Soul Pattinson launched an unsuccessful buyout of  Regis.