Australasia’s oldest and largest private equity firm has reached an agreement to buy AMP Capital's 50% stake in Opal HealthCare, Australia's largest private aged care operator, with 133 aged care homes across NSW, Victoria, QLD, WA, and SA.
The last remaining hurdle is regulatory approval from the Federal Government.
The Weekly SOURCE reported a deal was close in November last year, reporting the Sydney-based private equity firm had secured "exclusivity" over a 50% stake in the aged care provider, which is also owned by Singaporean investment vehicle GK Goh Holdings, valuing the company at "significantly" more than $2 billion.
A statement from the aged care provider issued to The Weekly SOURCE on Tuesday stated, “Opal HealthCare can confirm that agreement has been reached to sell the shareholding formerly managed by AMP Capital to Pacific Equity Partners for an undisclosed sum.
“The transaction is expected to complete by mid-2025, subject to Australian Government regulatory approval.
“There will be no changes to Opal HealthCare’s care and services. It continues to focus on its purpose of bringing joy to those we care for.”
Paul Foster, Managing Director of Pacific Equity Partners, was previously head of infrastructure at AMP Capital and sat on Opal HealthCare's board at that time. Paul was said to be leading PEP's negotiations to buy the Opal HealthCare stake.
Opal HealthCare has one of the most aggressive aged care expansion strategies in Australia. As well as the BlueCross acquisition in March 2024, soon after the Government announced its aged care reform package the provider announced it will proceed with building four new homes at Narwee and St Ives in Sydney, NSW, and Brighton and Caulfield in Melbourne, Victoria.
Originally Domain Principal Group, Opal HealthCare was then owned by AMP Capital Investors. In 2013, AMP sold 47.6% of the company to Asian tycoon Goh Geok Khim's Singapore-listed GK Goh investment company. GK Goh considered selling a portion of its stake in 2017, but held on.
Ansell Strategic and Jefferies and Allens have been advising Pacific Equity Partners on the deal. Morgan Stanley and Herbert Smith have been advising Opal HealthCare.
