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Buyout firm Adamantem cleared by OIO to own up to 100% of Heritage Lifecare

Monday 30th April 2018

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Australian private equity firm Adamantem Capital has gained approval from the Overseas Investment Office to lift its holding in Heritage Lifecare to as much as 100 percent to give the retirement village operator funds to expand.

A fund and a trust managed by Adamantem took control of the Wellington-based company early last year, in a deal valued at $115 million, saying at the time that Heritage had "substantial opportunities to further expand its portfolio." At the time it had 977 care beds and 312 living units across 19 sites with above average occupancy rates, it said in a statement. Heritage Lifecare planned to use the funds from the Australian firm to buy 10 of those sites.

Adamantem Capital Fund I Entities and Heritage Co-Investment Trust currently own about 79 percent of Vintage Holdco, the holding company of Heritage Lifecare.

The consent allows the entities to increase their holding in Vintage Holdco to up to 100 percent "through participating in funding initiatives for purposes such as funding future acquisitions and further developing the aged care portfolio," the OIO says in its decision summary published today but dated March 29. Based on data on the Companies Office website, the buyout firm holds about 87 percent of Vintage Holdco.

"Within a highly fragmented industry, Heritage Lifecare has substantial opportunities to further expand its portfolio and we look forward to supporting the team during this important next phase of the company’s growth," Adamantem managing director Anthony Kerwick said in April last year.

The remaining shares of Heritage Lifecare are owned by Harbourside Holdings, registered to the retirement village company's head office, which is itself owned by investors including Wellington businessman David Renwick. Renwick helped establish and run Guardian Healthcare, which was sold to Australia's DCA Group in 2005 for $300 million from Pacific Equity Partners, which had itself acquired the business a year earlier for $190 million, the NZ Herald reported at the time. Renwick retained a 16 percent holding and stayed in charge through the changes.

Harbourside appears to have participated in previous share issues.

(BusinessDesk)

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