Regis Healthcare (ASX:REG) has signed an agreement to acquire 100% of the ordinary shares of Rockpool RAC Holdings, under which it will buy four residential aged care homes with 600 beds in South-East Queensland, according to a Thursday Australian bourse filing.
The company will fund the transaction using its existing net cash, with completion expected on Sept. 1.
The net cash outlay is expected to be about AU$135 million, with Regis also assuming AU$204 million in refundable accommodation deposit (RAD) liabilities.
The company's Oxley facility, which was opened in March, is still ramping up, with 53% occupancy, and future RAD inflows are estimated at AU$40 million.
This acquisition increases Regis' total portfolio to 72 homes with about 8,200 beds.
The deal is expected to deliver a pro-forma annualised earnings before interest, tax, depreciation and amortization (EBITDA) of AU$13 million to AU$14 million, post-Oxley ramp-up, with fiscal year 2026 EBITDA expectation of AU$7 million to AU$8 million, the filing added.
The company expects the transaction to be earnings-per-share accretive in the fiscal year 2026, with further growth expected in subsequent years.
The company's shares rose nearly 2% in recent Thursday trade.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.