Aged care business back in Kiwi ownership
Kiwi minority shareholders have acquired all the shareholding interest in rest home and hospital provider Radius Residential Care from Kuwait Finance House.
The company is New Zealand’s fourth largest rest home operator (as opposed to retirement village operators and developers). Radius Residential Care has 21 aged residential rest homes and hospitals around the country and one retirement village in Hamilton. The company employs approximately 1200 staff and has total revenues of more than $60 million a year.
Chief executive Brien Cree, based in Auckland, increased his 20% ownership stake in the company to 57% giving him majority control and ownership of the business.
He and chief financial officer Suzanne Recchia found other private investors to purchase the remaining shareholding balance to facilitate a complete buyout. The Companies Office shows several superannuation funds have become recent shareholders.
Mr Cree has been with the company since its inception in 2003 and has helped build it up through acquisitions of existing arrest homes
He told NBR that he believed it was more appropriate to have local ownership of aged care facilities. He noted that many providers were selling out to offshore investors and most are already majority owned by foreign shareholders.
Radius Residential Care was formerly a privately owned subsidiary company of Radius Health Group, which also includes Radius Medical and Radius Pharmacy companies. Before the buyout, Radius Health Group shared a 67% majority stake in the Residential Care business together with Kuwait Finance House.
Mr Cree said Kuwait Finance was not committed to the aged health care sector and he wanted to take the company further than they did.
A confidentiality clause means he cannot disclose the price paid for the shares.