In another sign of consolidation in the sector, Opal this afternoon announced it is buying the operator's 31 aged care residences in Victoria, supporting more than 2,600 residents. It is a whole of business purchase including over 1,000 care clients living in their own homes, a new segment for Opal.
When the change of ownership is completed around June 2024, Opal HealthCare will provide care to more than 12,000 residents across 132 Care Communities around Australia.
David Eccles founded BlueCross in 1993 with the establishment of the group’s first aged care home. From 1998-2000, the provider acquired 10 additional residences. In 2006, BlueCross entered the home care business, acquiring a 43% stake in real estate investment firm Sapphire Holdings Group.
The following year, BlueCross acquired 3rd Age, adding six residences and more home care clients. In 2018, BlueCross merged with Sapphire Care. David and Cathy Eccles remain on the BlueCross board.
The SOURCE reported in October last year that BlueCross had engaged corporate advisory firm Canterbury Partners to test the market for a two-stage auction of its operations, with the price in the vicinity of $400 million. Bain Capital also was reported to be interested.
Opal, jointly owned by investment manager AMP Capital and Singaporean investment company G. K. Goh Holdings, is the only operator in Australia with over 100 homes. In August, Opal HealthCare entered the South Australian market for the first time, with the acquisition of aged care homes from Churches of Christ's brand Life Care.
It believes bolt on acquisitions extract synergies through cost savings from using its existing infrastructure to gain operational efficiencies in operating the business.
In addition, Opal has 17 aged care communities planned for development in metropolitan Sydney, Brisbane and Melbourne.
CEO Rachel Argaman OAM, who was recruited to Opal HealthCare in 2018 from Australian hospitality brand TFE Hotels where she headed up its more than 3,000 employees and nearly 100 hotels across five countries, said the BlueCross acquisition adds to its 22 Care Communities in Victoria.
“Ensuring continuity of care is paramount, and we look forward to welcoming BlueCross’ 4,000 team members who will move across to Opal HealthCare when the sale completes,” she said.
“We know that companies don’t succeed, people do. Together we will continue to serve people across Australia with high-quality and compassionate care.”
