Leading law firm MinterEllison has advised Estia Health Limited (Estia Health) on its sale to private equity firm Bain Capital (Bain Capital) for an enterprise value of $959 million by way of scheme of arrangement.
Estia and Bain Capital entered into a scheme implementation agreement in early August 2023, and today, the scheme was implemented. Bain Capital has acquired 100% of the shares in Estia Health, which has led to Estia Health being delisted from ASX.
Estia Health shareholders received a cash consideration of $3.20 per share, reduced by the amount of Estia Health’s final FY23 dividend. The scheme consideration represents a 50% premium to Estia Health’s closing share price of $2.14 on 21 March 2023, before Bain Capital’s initial proposal.
Estia Health is a leading residential aged care provider in Australia, operating a diverse geographic and demographic portfolio of 73 residential aged care facilities in Queensland, New South Wales, Victoria and South Australia. It has approximately 7,800 employees, operating 6,720 resident places.
Corporate and M&A partners Daniel Scotti and Nicole Sloggett led a multidisciplinary team with deep expertise in health and residential aged care.
Daniel Scotti commented: “We are pleased to have supported our long-standing client, Estia Health, in achieving this milestone. The transaction demonstrates that the increasing regulatory certainty in the aged care sector promotes investment and transactional activity.”
Nicole Sloggett commented: “This acquisition demonstrates the resilience of the Australian market and the attractive nature of Estia Health as a leading player in the aged care industry. Our work on this transaction demonstrates our leading M&A expertise and deep knowledge of the health and aged care industry.”
