Regis Healthcare Limited (ASX: REG) (Regis) is pleased to announce that it has entered into a binding agreement to acquire CPSM Pty Ltd, a privately-owned residential aged care provider for net consideration of $74.2 million. As part of the transaction, the RAD liability assumed at completion is expected to be approximately $151 million.
CPSM was founded in 2010 and owns five freehold Queensland-based premium residential aged care facilities in high demand metropolitan locations with 644 operational beds. Four of the homes are located in Brisbane and one on the Gold Coast with more than 80% of the beds built or refurbished since 2018. The business has a strong reputation as a high quality residential aged care provider with an excellent accreditation history and financial performance. CPSM generated FY23 operating revenue and underlying EBITDA of $67 million and $13 million respectively. The five homes are currently operating at high occupancy, with an average of 96% in Q1 FY24.
The consideration represents a multiple of 5.7x FY23 underlying EBITDA or approximately $115,000 per bed. The acquisition will be funded by existing debt facilities.
Regis’ CEO Dr Linda Mellors said, “I am pleased to announce the acquisition of CPSM, a highly regarded residential aged care provider in Queensland. This transaction is consistent with our strategy to broaden our residential aged care footprint through the acquisition of premium homes. CPSM shares many common values with Regis and I commend the founders for the high-quality business they have built. I look forward to welcoming CPSM’s residents, families, employees and communities to Regis and ensuring a seamless transition of services.”
The transaction, which is subject to customary conditions, is expected to complete on 1 December 2023.
More detailed information on CPSM is included in the ‘Acquisition of CPSM Pty Ltd’ presentation released to the ASX today.
For further information, contact:
Rick Rostolis, Chief Financial Officer
 Excludes transaction costs and landholder duties and subject to customary adjustments including final RAD balances. Consideration calculated on a cash free / interest-bearing debt free basis.
 Excludes one-off items and impact of AASB16 Leases.
Regis is one of the largest aged care operators in Australia. Founded nearly 30 years ago, Regis provides services to 7,000 older Australians through residential aged care homes, home care service hubs, day therapy and day respite centres and retirement villages. Regis prides itself on providing high quality care and services through its 9,500 dedicated employees.
CPSM was founded in 2010 and operates five residential aged care facilities in South-East Queensland with 644 operational beds. CPSM believes in making a difference for older Australians, through promoting dignity, building relationships and commitment to their residents, families and employees. Learn more about CPSM.