Victoria’s aged care provider BlueCross reportedly seeking a buyer

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BlueCross, founded by David and Cathy Eccles in 1993, is reported to be putting itself on the market.

It merged its Victorian operations with Sapphire Group in 2017 and The Australian is reporting it is now looking to private equity firms to acquire the entire business, which could be worth between $600 million and $800 million.

BlueCross has, according to its website, 32 aged care facilities in Victoria.

Interest in aged care provision in Australia has been rekindled after the Federal Budget offered $17.7 billion funding over five years to the sector reeling from the report from the Royal Commission into Aged Care.

The latest formal offer is by Not For Profit Catholic healthcare provider Calvary, who have bid $278 million for Japara Healthcare, equating to $1.04 per share, last month. At the time Japara Healthcare told shareholders to take no action. Japara’s shares opened at $1.09 on Wednesday.

Before the Royal Commission into Aged Care in 2018, EQT was in discussions with Archer Capital about buying its aged care provider Allity.

The conglomerate Washington H. Soul Pattinson and Regis co-founder Bryan Dorman had a $556 million bid for ASX-listed Regis Healthcare rebuffed last year.

Global buyout funds interested in acquiring assets in the aged care sector include TPG Capital, Carlyle and Kohlberg Kravis Roberts. European buyout fund EQT is also reported to be showing interest.