Today, Regis Healthcare Ltd (ASX: REG) announced the $45 million acquisition of two high-quality Victorian aged care homes, boosting its footprint to 74 homes with approximately 8,400 beds.
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What did Regis Healthcare report?
- Acquisition of Ocean Mist Aged Care (120 beds) in Torquay and Drysdale Grove Aged Care (110 beds) in Drysdale
- Total purchase price: $45 million, funded from existing net cash
- Transaction expected to complete on 1 December 2025
- Net cash balance at 30 September 2025 was $99 million
- Assumption of approximately $36 million in RAD liability
- Expected to be EPS accretive in FY26
What else do investors need to know?
Regis says both acquired homes have been built or refurbished within the last eight years, featuring 100% single ensuite rooms. The company highlighted that the gross price per bed is well below replacement value, and there's potential upside through higher occupancy and room pricing.
Regis will be integrating the new homes, aiming to achieve cost synergies in procurement and administration. The acquisition continues Regis' strategy of growing its presence in regional Victoria and beyond, supporting ongoing growth initiatives.
What did Regis Healthcare management say?
Regis Managing Director and CEO Dr Linda Mellors commented:
This acquisition strengthens our footprint in Victoria, extending our reach west of Melbourne into a rapidly growing regional area with increasing demand for aged care services. The acquisition brings two well-established, high-quality homes with a strong reputation for care into the Regis portfolio. We are excited to welcome residents, families, staff and the broader communities, and remain committed to ensuring a smooth and supportive transition. Upon completion, Regis will have added 13 homes and more than 1,700 beds through acquisition over the past two years. We continue to actively pursue further strategic acquisitions that deliver long-term value for shareholders.
What's next for Regis Healthcare?
The transaction is set to complete by 1 December 2025, subject to usual conditions. Management expects the deal to be earnings per share (EPS) accretive in FY26, with further value creation expected in following years.
Regis is actively pursuing other opportunities to expand its high-quality portfolio and deliver long-term value for shareholders, supported by a solid net cash position and continued demand for aged care services.
Regis Healthcare share price snapshot
Regis Healthcare shares have fallen approximately 3% over the past 12 months, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen around 10% over the same period.
