Freehills was chosen to advise health care company DCA Group Limited (DCA) on the expansion of its aged care interests following its acquisition of New Zealand’s Guardian Healthcare Group Limited for NZ$300 ($270) million.
Guardian Healthcare, which is owned by Pacific Equity Partners and Management, is New Zealand’s leading residential aged care business with eight per cent of the New Zealand aged care market, which includes 32 facilities and 2,163 residential beds.
DCA will fund the acquisition through existing debt facilities and a $180 million bridge facility, which will be provided by UBS. DCA intends to re-finance the bridge facility through the issue of hybrid securities and the proceeds from the exercise of DCA’s listed options.
DCA’s acquisition follows a trend in international acquisitions in the aged care sector by several companies, with more than $1 billion in transactions occurring this year.
The Freehills team is being led by partners Andrew Pike and Chris Robertson and includes senior associates Daniel Krutik and Natalie Allen.
Freehills worked closely with Bell Gully, DCA’s New Zealand legal advisers, on the transaction.
Andrew Pike said: “Freehills has worked with DCA for many years now, including acting last year on its merger with MIA. We are pleased to see DCA expand their aged care business into overseas markets. This transaction is a testament to the value of the successful relationship we have enjoyed with DCA over the long term.”