The AFR’s rumour-mill section Street Talk is reporting that the large Not For Profit is on the shortlist of potential buyers in the second and final round of the auction for the home care provider.
As we reported here, KinCare’s bankers at Moelis & Co began courting potential buyers into the two-stage auction earlier this year.
Other buyers in the second round are reported to be Quadrant Private Equity and Zenitas Healthcare (owned by private equity firm, Adamantem Capital), and Sydney-based buyout shop Crescent Capital. Street Talk says more than five parties have been shortlisted for the second round of due diligence.
ST also says interested parties were asked to value the business based on $10.5 million annual EBITDA – the annualised run-rate number based on fourth quarter 2020 forecasts, according to confidential sale documents.
Potential acquirers were told KinCare “had recorded 22 per cent annual revenue growth, on a compound basis, in the nine financial years to 2018, to be worth $111 million in the 12 months to December 31.”
As at 31 March the provider also had 9,465 clients.