Bain Capital has reportedly added M&A advisory group Gresham to the ticket to find a buyer for Estia Health, Australia’s second-largest residential aged care operator.
Earlier this month. we reported Bain had already engaged investment bank Barrenjoey to pursue either a trade sale or a potential ASX float of Estia Health, following its successful listing of Virgin Australia.
Bain acquired Estia in December 2023 for $83 million, equating to roughly $280,000 per bed – a price widely viewed as “rolled gold” at the bottom of the market. By December 2024, The Australian reported Bain was already exploring an exit, with Estia meeting cash-flow and IRR targets ahead of schedule.
Since the deal closed, Estia has accelerated growth – from 75 homes in 2023 to 94 homes today – via acquisitions (six Queensland homes from Vacenti Aged Care, two Sydney homes from Mark and Evette Moran, seven homes in NSW/Vic from Aurrum Aged Care, and three Queensland homes from Calvary Health Care) plus greenfield openings and a pipeline under way.
The move comes amid heightened M&A activity in aged care as demographics tighten and the new Aged Care Act takes effect on 1 November 2025. Notably, Pacific Equity Partners acquired 50% of Opal HealthCare earlier this year, reportedly valuing Australia’s largest operator at $2 billion-plus.
Meanwhile, Regis shares have fallen nearly 30% since September after the company flagged a pullback in development following recent AN-ACC price adjustments – potentially making it a more attractive target.
