Bain credit unit buys Australia aged care business

The deal is worth A$50-100 million ($38-77 million), according to The West Australian. A source close to Bain confirmed the transaction had taken place but offered no comment on pricing. John Gillett, who has run Craigcare since 2003, said he was selling in order to spend more time with his family.

Craigcare, which has been family-owned since 1972, owns and operates six residential care facilities and two retirement villages across Western Australia and Victoria. It has a capacity of approximately 900 beds and employs about 800 people.

In recent years there has been considerable PE interest in aged care, where changing demographics are driving demand for services and government investment is seen as insufficient. As a result, private sector players are expected to ramp up supply, consolidating a highly fragmented industry in the process.

Quadrant Private Equity bought aged care provider Estia Health and listed the company in 2014, while Archer Capital still holds Allity, a similar business acquired from Lend Lease Group. New Zealand Superannuation Fund and infrastructure investor Infratil purchased retirement village operator RetireAustralia with a view to introducing integrated aged care services.

Last year Advent Partners invested in W&L Holdings, which offers a range of health and educational services for seniors across more than 200 facilities nationwide. The company wanted to develop its interests in residential aged care, ageing in the home and disability services.

Bain Capital Credit, previously known as Sankaty Advisors, is targeting $750 million - with a hard cap of $1 billion - for its debut Asia special situations fund.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Australasia
• Consumer
• Real estate
• Buyouts
• Australia
• Bain Capital Asia
• Structured finance