Opal gives Bain Capital-backed Estia a contest for BlueCross

Aged care business Opal is being sought by two suitors, say sources. Picture: iStock.

The Bain Capital-backed Estia appears to be getting a run for its money in its efforts to buy aged care provider BlueCross Aged Care, with suggestions in the market that industry rival Opal HealthCare is also in talks to buy the business.

Opal manages 100 residential aged care communities in metropolitan and regional areas in NSW, Victoria, Queensland, Western Australia and South Australia.

Opal was previously owned by AMP Capital, a business now under the control of Dexus.

It has an interest in looking at bolt on acquisitions to extract synergies through cost savings from using its existing infrastructure to gain operational efficiencies in running the business.

Estia, which is subject to a buyout from Bain Capital, is known to have been looking at the business for some time.

BlueCross is known around the market to have been up for sale since around 2021 when the divestment of a minority stake was first contemplated, and the suggestion is that the asking price is about $400m.

More consolidation in the aged care space is expected to play out in 2024, as groups look for cost savings by gaining scale following a period of industry reform that requires more strict conditions surrounding patient care.

In August, the Boston-based buyout fund Bain Capital agreed to buy Estia for $825.6m and while the company is still listed, it will soon be in Bain’s hands after shareholders voted in favour of a deal and it has received Foreign Investment Review Board approval.

Blue Cross, based in Melbourne, currently operates 31 aged care residences in Victoria with 2600 residents and over 4000 staff and is being advised by Canterbury Partners.

Tigerlily

Elsewhere, there’s now talk that there’s up to 11 parties circling around the Tigerlily swimwear brand.

Apparently, first round bids are due next week in a process run by Deloitte for the Crescent Capital-owned business.

Sources in the market had signalled there were three serious players lining up for the business, so how many of the 11 groups eyeing the company turn out to be tyre kickers remains to be seen.