Publicly listed aged care operator Estia Health has agreed to be acquired by the same private equity fund that owns airline Virgin Australia.
Estia said on Monday it had signed a $838 million takeover scheme with Boston-based Bain Capital after months of negotiations.
If shareholders approve the scheme at a meeting expected to be held in November, they will be paid $3.20 per share, a 50 per cent premium to Estia’s closing price before takeover speculation began in March.
The purchase price values Estia at an enterprise value of $959 million, not including its $59.7 million in debt and $62.1 million in lease liabilities.
“We are pleased that Bain Capital has recognised Estia Health’s value as a leading Australian aged-care operator with a strong reputation for person-centred care,” chairman Gary Weisse said.
The ASX300 company cares for over 8,000 residents in 73 aged-care homes in NSW, Queensland, South Australia and Victoria.
It was formed in 2014 with the amalgamation of Estia Health, Padman Health Care and Cook Care.
There were signs another private equity deal was also about to be completed.
ASX200 funeral home owner InvoCare was in a trading halt on Monday, pending an announcement in relation to TPG Capital Growth’s $1.9 billion takeover offer.