Estia Health will add seven residential care homes to its portfolio after announcing it acquired multi-state aged care provider Aurrum Aged Care.
Key points
- Estia Health operates 78 residential care homes in four states and supports more than 8,000 residents
- Aurrum was established in 2013 and supports roughly 800 residents across seven homes in Victoria and New South Wales
- The acquisition of Aurrum follows another purchase in December when Estia announced it had secured three Queensland aged care homes from Calvary Health Care
Estia Health’s acquisition extends a busy period of significant change that stems back to its ownership change in December 2023. Just over 12 months ago its ownership shifted to fall under the Bain Capital fund.
This move led to Estia Health being delisted from the ASX to become a proprietary limited company.
Those changes have not slowed progress and the addition of Aurrum assets underscores the organisation’s growth intentions.
“We are delighted that we are able to increase our commitment of care and services for older people through the management of approximately 800 additional residential aged care places across these seven homes, including entry into the Central Coast of NSW to complement existing homes in the Hunter and Mid North Coast regions,” Estia Health CEO Sean Bilton said.
Seven boutique homes will change hands in the deal, including three in the New South Wales Central Coast region (Erina/Terrigal Drive, Norah Head, Wyoming) and four in Melbourne (Brunswick, Healesville, Plenty, Reservoir). Estia Health will likely operate the homes from April 1, 2025.
There will be no change in arrangements for Aurrum residents. Likewise, staff can expect continuity of employment.
“We want to assure all residents and their families that they will continue to receive the same dedicated care and services from the same people that they always have,” Mr Bilton said.
“As a provider of 78 residential aged care homes across Australia, we are proud to offer individualised care and support to our residents and their families at an incredibly important time in their lives.”
Estia Health and Aurrum management teams have already met with residents, families and employees to outline the transition process and respond to any questions.
With another period of change on the horizon coinciding with the arrival of a new Aged Care Act and increasing regulatory requirements, Aurrum representative Adam Wilson said Estia Health’s larger scale would lead to long-term success.
“After building Aurrum aged care over the last decade into a leading aged care provider, we have made the considered decision to sell to Estia Health,” Mr Wilson said.
“Following a comprehensive due diligence process, we are pleased that Estia Health is both well placed to acquire the homes and will ensure continuity of quality care for our residents. We believe our staff will also enjoy additional career opportunities and benefits.
“We believe that being part of a larger scale organisation will increasingly be a key advantage to the long-term success of aged care providers.”
Six of Aurrum’s homes have earned a four-star overall star rating with Aurrum Reservoir the only home with a three-star rating.
