By Dow Jones Business News, October 25, 2013, 02:29:00 AM EDT
KKR & Co Eyes Macquarie's Stake in Australia's Regis Group - Sources
By Gillian Tan
SYDNEY--Global private equity firm KKR & Co. ( KKR ) is considering acquiring Macquarie Group Ltd.'s (MQG.AU) stake in
Australian aged care provider The Regis Group Pty Ltd., people familiar with the matter said Friday.
The Wall Street Journal reported earlier this month that the Australian bank's 46% stake could be worth more than 170
million Australian dollars (US$163 million).
The company, which operates as Regis Aged Care, was formed in 2007 when the formerly-listed Macquarie Capital Alliance
Group merged its Retirement Care Australia business with Regis Group in a deal that valued RCA at A$220 million. It has
more than 45 facilities across Australia that offer either low-level care homes, which enable residents to live as
autonomously as possible, or high-level care homes, which can provide 24 hour nursing care.
Barclays PLC is advising KKR and Greenhill & Co. is advising Macquarie.
KKR's interest in residential aged care, a sector subsidized by Australia's government, follows a flurry of deals in
the industry. In recent months, Singapore-based G. K. Goh Holdings Ltd. (G41.SG) bought AMP Capital's 47.6% stake in
Domain Principal Group for A$137 million and Australia's Quadrant Private Equity invested A$90 million, excluding debt,
for a more-than 60% stake in Estia Health.
The firm already has exposure to Australia's healthcare sector through Genesis Care Pty Ltd, Australia's largest
privately-held provider of cardiology, sleep treatments and radiation oncology.
On Thursday, KKR reported its third-quarter profit surged more than 60%, boosted by the rising value of companies it
owns and fees it earned from new deals it struck. Earlier this year, it closed a US$6 billionAsia-focused fund, the
largest private equity fund specifically dedicated to the region.
-Write to Gillian Tan at email@example.com
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