Estia Health is one of the largest private providers of residential aged care facilities in Australia. As at 1 October 2014, Estia had 3,203 places at 39 aged care facilities in Australia, South Australia, New South Wales and Queensland.
Quadrant was attracted to Estia Health due to its exposure to attractive industry fundamentals (ageing population, shortage of aged care beds), brownfield opportunities, fragmented market and high quality aged care facilities (high proportion of single rooms, funded by a low number of bonds) and management team.
Our investment thesis focussed on using Estia Health as a platform asset to acquire aged care facilities and businesses, improve clinical outcomes/compliance procedures, invest in IT and clinical management systems and invest in high quality management and clinical staff.
Quadrant achieved a number of operational and structural improvements including
- Leading the acquisitions of 2 material bolt on acquisitions – Padman (1,076 beds / 13 facilities) and Cook Care (786 beds / 9 facilities)
- Manage and drive integration of acquisitions
- Successfully more than tripling the number of beds during our investment horizon from ~1,000 beds to over 3,200 beds
- Investment in IT management systems – Epicor, HealthMetrics and TimeTarget
- Driving greenfield and brownfield developments
“Estia Health was successfully listed on the ASX in December 2014. Quadrant retains a 17% stake in the listed Estia Health business"