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Family-owned aged care provider Medical & Aged Care Group (MACG) has paid about $41 million to acquire two aged care homes in a deal that has boosted the company’s portfolio to 11 properties across Victoria.
Melbourne-based MACG has acquired Cheltenham Manor and Greenwood Manor following a competitive bid process, beating out major industry players for the assets.
The company says the deal was struck at a net cost of $200,000 per bed, pitching the purchase price at $41.4 million, with the resident liability for Refundable Accommodation Deposits at about $85 million.
The refundable deposit figure represents the lump-sum payment made to an aged care provider for a room in an aged care home, which is refunded to the resident or their estate when they leave the facility.
The acquired aged care facilities have added 207 beds to the MACG portfolio which provides residential, respite and palliative care to more than 850 residents.
"This acquisition is a landmark moment for Medical & Aged Care Group,” says MACG CEO Cameron McPherson, whose family founded the company in 1993.
“We competed with major industry providers to acquire these new homes.
“Our success represents the trust and respect we have earned for our vision to champion a model of aged care that places residents, their families and our teams at the heart of everything we do.”
When it was founded in 1993, MACG initially operated as a finance company but later transitioned into aged care ownership and management.
The company ceased its lending operations in 1995, delving into the emerging age care sector that year with the purchase of a small medical practice in the LaTrobe Valley and a nursing home in Geelong.
Today, MACG is one of Australia's leading privately owned companies providing aged care services with 11 homes across Victoria and a team of more than 1,200.
MACG says the latest acquisition has extended its reach into Melbourne’s south-east and “deepens its responsibility” to community-based care for Victoria’s elderly.
The deal is expected to create 30 new jobs across clinical care, hospitality, maintenance, wellbeing and administration.
MACG says the acquisition also signals the growing role mid-sized operators play in a sector dominated by large corporates and not-for-profits.
“We are proud to welcome Cheltenham Manor and Greenwood Manor into the MACG family, to continue their legacy of community and respect, and to integrate their talented and passionate teams with our own,” says McPherson.
“Our immediate priority is to continue enhancing the lives of our residents and provide rewarding career paths for our dedicated team.”
The acquisition, which settled this week, was facilitated by Amicum, a specialist in mergers, acquisitions and divestments of aged care and retirement living businesses and property portfolios.
“Looking ahead, our purpose at MACG remains the same,” says McPherson.
“We will lead with the values of family on which our organisation was founded and continues to be managed by. We will continue to invest in and embrace technology and innovation that enriches human connection.”
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