Aussies snap up aged care homes
Australian-owned Heritage Lifecare has bought Christchurch businessman John Tooby’s Golden Healthcare Group to create the third largest aged care provider in New Zealand.
Heritage chief executive Norah Barlow, the former chief executive of retirement village operator Summerset Group, said the purchase brought seven Christchurch aged care homes and two adjoining villages into Heritage’s national aged care business.
It has care homes and villages from Wha¯nga¯rei to Invercargill, most bought in the past couple of years.
Heritage has been on the acquisition trail since 2017 when it bought into an existing New Zealand rest homes business and has taken its number of care homes and villages from five to 49, including the purchase of Golden Healthcare Group, she said.
Heritage is 86 per cent Australian-owned by private equity firm Adamantem Capital.
Golden Healthcare was founded and built up by Tooby over more than 30 years. He is keeping one of his retirement homes, the Lady Wigram Retirement Village, run by his daughter.
‘‘It’s been a real privilege getting to know so many fantastic people living in our facilities,’’ he said.
‘‘I’m confident that Heritage will continue to provide the same high level of care on which we have prided ourselves over the past three decades,’’ Tooby said.
Barlow said the Heritage purchase of Golden Healthcare did not require Overseas Investment Office approval because the purchase price was less than $100 million and there was no sensitive land involved. The price paid was confidential.
Heritage would be the third largest aged care provider behind Bupa and Ryman Healthcare. Aged care refers to the care of nonindependent older people in rest homes and care facilities.
Heritage also had villas and units for independent elderly but that was a smaller part of its business.
Barlow said Heritage had 2500 care beds and about 700 unit/villas in 24 villages. Six of the villages were stand-alone and 18 were located with care homes.
Heritage’s acquisitions were not over. ‘‘We still believe there’s room to grow a bit bigger.’’
Barlow said the company believed in the value of being bigger to get the advantages of scale, such as in medical supplies, cars and other products needed to run care homes.
There were a lot of smaller aged care groups, which started years ago as small businesses whose owners were looking to retire.
Asked about the possibility of rationalisation of staff at Golden Healthcare, Barlow said that was not planned.
Golden Healthcare would be run as a stand-alone group within the Heritage business.
‘‘They are doing a good job, they are well-run and they are wellrespected,’’ she said.
Heritage thought that it could add value through the advantages of scale in procurement, and with its payroll and HR systems.
The purchase would be completed on Friday and then Heritage would start running Golden
Healthcare on Saturday.
Heritage would work closely with staff to enable a smooth transition and continue the high quality of care residents enjoyed.
‘‘We have no plans for any immediate change to the impressive facilities and with the outstanding reputation Golden Healthcare has built up in Christchurch, neither do we plan to change the branding with it,’’ Barlow said.