The Regis Healthcare Ltd (ASX: REG) share price is in focus today following news that the company will acquire Royal Freemasons Homes of Victoria's home care business, with the deal expected to lift its home care revenue by more than $10 million.
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What did Regis Healthcare report?
- Regis to acquire Royal Freemasons Homes of Victoria's home care business, adding around 480 clients
- Annualised home care revenue to rise to approximately $50 million
- Acquisition funded from existing cash reserves
- Transaction completion expected in the second quarter of FY27
What else do investors need to know?
The agreement to acquire Royal Freemasons' Victorian home care business expands Regis Healthcare's service footprint in Melbourne, building on its existing home care service hubs. The Royal Freemasons business delivers Commonwealth Home Support Programme and Support at Home services, further strengthening Regis' offerings in the community aged care sector.
This transaction is subject to regulatory approvals and other customary conditions. Regis will not be raising new equity or debt to fund the deal, as it will be fully funded using existing cash on hand.
What did Regis Healthcare management say?
Regis CEO Andrew Kinkade commented:
Royal Freemasons is a well-regarded home care provider that strengthens Regis' existing operations and expands our scale in Melbourne. We believe the enlarged home care business is well positioned to benefit from key industry tailwinds including an ageing population, increased Government funding, and a growing consumer preference to age in place. We are delighted to welcome Royal Freemason's clients and staff to the Regis family and look forward to continuing to deliver high-quality home care services and support.
What's next for Regis Healthcare?
With the addition of Royal Freemasons' home care clients and staff, Regis aims to further cement its position as a leading aged care provider in Australia. The company highlighted expected benefits from ongoing sector trends such as growing demand for in-home care and increased Government support.
Once the deal completes in the second quarter of FY27, Regis will be serving more than 10,000 clients nationwide, providing comprehensive care through both residential and home care channels. The company plans to leverage its expanded scale to enhance service delivery and pursue further growth opportunities.
Regis Healthcare share price snapshot
Over the past 12 months, Regis Healthcare shares have remained flat, slightly trailing the All Ordinaries Index (ASX: XAO), which has risen 2% over the same period.
