Retirement village owner buys two rivals

Posted: May 7, 2012 at 2:13 am

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Published: 10:47AM Monday May 07, 2012 Source: BusinessDesk

Source: Metlifecare

Metlifecare, which raised $45.5 million of new capital last year, has agreed to buy rivals Vision Senior Living (VSL) and Private Life Care Holdings (PLC) in a deal worth some $216 million in stock and cash.

The retirement village operator will buy VSL's five existing villages for $83 million in Metlifecare shares, and PLC's three villages for $123 million for scrip, the company said in a statement.

VSL's shareholders will also buy 4.2 million further shares for some $10 million in cash to pay down the retirement village operator's debt.

"The merger will strengthen Metlifecare's presence in the key Auckland retirement village market and ensure that the company continues to compete strongly in the New Zealand retirement village sector," managing director Alan Edwards said.

"The merger will be immediately cash flow accretive and will provide an enhanced platform for Metlifecare to drive growth and shareholder value."

In February, Metlifecare reported a 38% slump in first-half underlying profit as it had to pay rising insurance costs and had to contend with smaller operating revenue after selling its Merivale Village last year.

The merger will boost Metlifecare's portfolio to 24 villages, three of which are in development.

The number of units will increase to 3,902 from 2,460, while brownfield and greenfield capacity climbs to 1,011 units from 380 units.

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Retirement village owner buys two rivals

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May 7th, 2012 at 2:13 am

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