Not for Profit Bolton Clarke acquires private operator Allity in sector’s largest aged care transaction

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After missing out on the ASX-listed Japara Healthcare to Calvary Health Care earlier this year, the Not For Profit village and aged care provider Bolton Clarke is finishing 2021 on a high, acquiring Allity, Australia’s sixth largest residential aged care provider and its 43 homes and more than 3,800 beds in a binding agreement.

The transaction price remains confidential; however sources have indicated to us that it was close to $700 million. Allity’s EBITDA is understood to have been around $60 million for the last financial year.

The deal will deliver Bolton Clarke an expanded footprint across NSW, Victoria, Queensland and South Australia.

The acquisition – believed to be the country’s single largest aged care transaction – makes Bolton Clarke the second largest aged care provider in Australia, equal with Estia Health, after Opal HealthCare which has 80 homes.

Previously, Bolton Clarke was sitting at 37 aged care homes along with 36 retirement villages.

Archer looking for a buyer

As we reported here, Allity’s owners, Australian-owned equity company Archer Capital, has been on the hunt for a buyer for the provider this year, after shelving plans after the ABC exposé and resulting Royal Commission.

Archer set up Allity in 2013 after it paid $270 million for 30 aged care homes from Lendlease – making the rumoured price a significant return on this investment.

“This is a rare and exciting opportunity to bring two strong companies together to set a foundation for future growth, innovation and seamless integrated care,” said Bolton Clarke CEO Stephen Muggleton (pictured right).

“Despite the size of this transaction, our Board remains focused on growth,” added Bolton Clarke Chairman, Pat McIntosh AM.

“As one of the country’s largest Not for Profit organisations, Bolton Clarke is well positioned to provide support to organisations with less capacity to manage the reforms ahead.”

The handover is expected to take place in February 2022.

Moelis Australia acted as Bolton Clarke Advisors with Ansell Strategic leading the operational due diligence process, while Macquarie Bank and Evans & Partners advised Allity.

Ansell Strategic also says it is currently engaged in similar large transactions which will be announced early in 2022, indicating further consolidation of the aged care and retirement living sector is imminent.

Watch this space then.