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Australian Unity is set to boost its Home Health division after striking a deal to acquire Plena Healthcare Holdings from Zenitas Healthcare for $70 million, bringing into the fold a national business that provides mobile allied health services to more than 100,000 customers annually within residential aged care and community settings.
The acquisition will be paid in two tranches on a debt and cash-free basis, starting with an initial $45 million sum on completion with the balance to be paid in February next year.
Funded through new and current bank facilities as well as existing funds, the deal will create merged Home Health operations that employ more than 6,700 people and provide approximately 4.5 million hours of care to160,000-plus care customers each year.
Australian Unity's group executive for Home Health, Prue Bowden, describes the acquisition as an important step towards creating one of Australia’s leading integrated healthcare companies.
"The proposed acquisition of Plena Healthcare strategically diversifies and enhances our existing Home Health business, by delivering mobile allied health services in an innovative manner that can be further scaled within our existing operations," Bowden says.
"These critical services allow Australian Unity to pursue its broader ambition to enable Australians to live and age well in their preferred setting. Importantly the acquisition gives us considerably greater scale to better support the complex needs of our customers and patients."
Australian Unity’s group managing director, Rohan Mead, highlights emerging disruption in the care sector.
"Old models of care will be insufficient and less than effective for the demography of the future," Mead says.
"Mutual companies like Australian Unity are orientated to the consumer, their customer, and can therefore play an important role in seeking valuable innovation on behalf of the community in these areas of vital need
Completion of this transaction is subject to receipt of clearance from the Australian Competition and Consumer Commission (ACCC) and other conditions.
Australian Unity Limited has three separate ASX-listed securities on issue: Mutual Capital Instruments (AYUPA); Australian Unity Bonds Series D (AYUHD); and Australian Unity Bonds Series E (AYUHE).
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