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Aged-care centre group Regis Healthcare (ASX: REG) is poised to double its home-care business after securing a deal to acquire in-home support provider BodeWell Community Care.
The Melbourne-based Regis, one of Australia’s largest aged-care operators, has secured a binding agreement for BodeWell, a privately-owned home care operator that provides home care packages and NDIS services in Victoria and Queensland.
The purchase price has not been disclosed, but Regis has announced that the deal will double revenue for its existing home care business to about $30 million servicing more than 2,500 clients.
"BodeWell is a well-regarded home care service which enhances Regis' existing operations by providing greater scale in Melbourne and extending operations into South-East Queensland,” says Dr Linda Mellors, the CEO of Regis.
“We expect the expanded home care business will benefit from an ageing population, increased government funding, and the shift in consumer preference to age in place.
“We are excited to welcome BodeWell's clients and staff to the Regis group and look forward to continuing to deliver high quality home care services."
Regis plans to fund the acquisition from existing cash reserves with the deal expected to settle in the fourth quarter of FY25.
The acquisition is the second that has been secured this financial year by Regis, which last month settled the $35.5 million deal for two residential aged care homes at Victoria’s Mornington Peninsula from Ti Tree Operations.
The acquisition, which added 262 beds to Regis’ aged-care portfolio, expanded the group's national portfolio to 69 homes and 7,750 beds.
Regis, which has managed to grow its aged care business amid challenges for the sector, benefitted from a 2.6 percentage point increase in average occupancy across its aged care centres in FY24.
Net profit after tax of $35.6 million was supported by a 30 per cent boost in annual revenue to $1.01 billion, with the latest result aided by the full-year contribution of five aged care facilities in Brisbane and the Gold Coast which were acquired at the end of 2023 for $74.2 million from the privately owned CPSM Care.
Mellors told shareholders at the company’s annual general meeting in November that the positive performance by Regis comes “in an environment where many providers continued to struggle financially”.
Regis posted a statutory net loss of $21.4 million in FY24 with the bottom-line result impacted by non-cash bed licence amortisation.
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