Bupa set to become Australia's largest private aged care provider

Bupa Care Services Australia will become the country's largest private aged care provider following its acquisition of Innovative Care's aged care operations.

The portfolio covered by the transaction comprises 10 residential aged care homes and 1114 beds in Queensland, New South Wales and Victoria. It also includes plans for construction of additional beds. As part of the transaction, Bupa is taking an option to acquire further land.

It was agreed by both parties that the purchase price of the deal would remain confidential.

The acquisition would see Bupa's aged care portfolio grow to 60 homes, comprising 5,616 beds. The purchase of the Innovative Care aged care business follows the recent acquisitions of Bupa South Hobart (TAS) and Bupa Glenvale (QLD), and the opening of Bupa Bankstown (NSW) in 2012.

Completion of the acquisition is subject to satisfaction of certain conditions including necessary regulatory approvals which are expected to be obtained no later than mid February. Bupa will make offers of employment to all of Innovative Care's aged care home staff.

Bupa Australia and New Zealand Managing Director Dean Holden said that the acquisition would allow Bupa to continue to set the standard for person-centred care for the elderly.

"Bupa is globally recognised as a leader in aged care services, including care for those with dementia. This acquisition will strengthen our ability to be a healthcare partner to more Australians in aged care, private health insurance, health coaching, optical outlets and corporate health services," Mr Holden said.

Bupa Care Services Australia General Manager, Paul Gregersen, said the Innovative Care homes were a "great fit for Bupa".

"We have spent a significant amount of time considering the available businesses on the market and believe that the Innovative Care portfolio represents the best strategic fit given its high quality and leading reputation for care services in the communities where it operates," Mr Gregersen said.

"This is the most significant acquisition in the Australian aged care market for several years and underlines Bupa's investment in the aged care industry and Australian health care more broadly.

"The high quality of Innovative Care's homes and their industry leading practices will strengthen Bupa's aged care offering in Australia.

"We will be working with Innovative Care management to carefully transition operations as smoothly as possible to ensure continuity of care for all residents."

Bupa is being advised by Herbert Smith Freehills while Innovate Care is being advised by Middletons.