Family-owned aged care provider BlueCross has engaged corporate advisory firm Canterbury Partners to test the market for a two-stage auction of its operations, the Financial Review has reported.
Indicative bids were due to be submitted this weekend, according to the AFR. Bain Capital, which is in the process of buying ASX-listed residential care provider Estia Health, is reportedly one of the bidders.
BlueCross, which is owned by the Eccles family and property investor Sapphire Holdings Group, operates 31 aged care homes across Victoria, with 2,600 residents. It supports more than 1,000 clients with home care services and has more than 4,000 employees and 300 volunteers.
The SOURCE reported in 2021 that the provider was seeking a buyer.
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 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, taking its total number of residences to 32.
David and Cathy Eccles remain on the BlueCross board.
The BlueCross sale price is said to be in the vicinity of $400 million.
The SOURCE: If the rumours are true and Bain Capital did prove successful in its bid, then this acquisition would take Bain’s investment in Australia’s residential care sector to over 9,000 beds, including the Estia Health portfolio – close to Opal Healthcare’s 9,000-plus beds.
