RAC to pocket $100m on Australian Unity homecare purchase

The RAC is set to pocket more than $100 million from the sale of one of Australia’s biggest aged home care businesses after a near-10 year partnership with private equity group Quadrant. The listed Australian Unity announced late on Tuesday it had agreed a deal to buy the national MyHomecare group of businesses from the RAC, Quadrant and the other shareholders in Enrich Health for $285 million. The RAC owns 36.4 per cent of Enrich, which was set up with on three care businesses spun off from the WA motoring mutual’s St Ives retirement home group in 2016. The group, which finished the 2022-23 financial year with $216m in cash, said its share of the proceeds would be added to its $800m investment portfolio. Since its formation, Enrich has been bulked up in typical private equity fashion with complementary businesses in preparation for an eventual sale. MyHomecare now provides for-profit services to about 20,000 customers across the country. Australian Unity was one of a range of potential buyers, including other private equity groups and health insurers, known to have looked over the Enrich portfolio last year. The deal is only for the Australian homecare business, with Enrich retaining the New Zealand arm. Set up as a friendly society in a Melbourne pub in 1840, Australian Unity will pay the $285m on a debt and cash free basis, with $215m payable on completion of the purchase. The balance is subject to adjustment but will paid over the following 18 months. MyHomecare will be merged with the buyer’s existing home care business, creating a combined group with 50,000 customers and 6000 staff. “The proposed acquisition enables Australian Unity to deepen its homecare offering, particularly in the area of self-managed services,” home help boss Prue Bowden said. “Importantly, the acquisition also delivers a step change in workforce capacity, enabling Australian Unity to advance into new regions, particularly South-east Queensland and add to our presence in some existing service geographies,” Ms Bowden said.