New acquisitions for major private providers

Japara Healthcare, Australia’s first publicly listed aged care provider, is to acquire the Whelan Care group in a deal worth $39.5 million.

The acquisition of the four aged care facilities from Whelan Care increases Japara Healthcare’s aged care portfolio by 258 beds and 41 serviced apartments. Japara said the purchase was being funded by a combination of cash reserves and debt.

Japara has also completed three brownfield developments at in Doncaster, Bendigo and Albury, resulting in an additional 124 new beds. Together with the Whelan acquisition this brings Japara’s portfolio of residential aged care beds to 3,400.

Japara Healthcare’s CEO Andrew Sudholz said the Whelan Care business aligned with Japara’s focus of providing “full spectrum health services” and its strategic direction to grow the business nationally and diversify into markets where high demand exists.

Settlement was anticipated to occur in October 2014, with the exception of a new facility under construction in Gawler which is expected to settle in March 2015, Japara said.

Estia expands ahead of ASX debut: reports

Meantime, Estia Health is about to make another significant acquisition in aged care, according to an Australian Financial Review report yesterday.

Estia, which previously purchased Padman in South Australia and Cook Care Group in NSW and Queensland, is understood to be acquiring a 1,000-bed provider, according to the AFR report.

This would bring Estia Health’s value to more than $1 billion, with a total of 4,225 residential aged care beds.

The AFR quoted unnamed sources as saying Estia Health’s ASX debut was now likely to happen later this year or early 2015.