US-based alternative investment firm Stonepeak has agreed to acquire New Zealand-based retirement and aged care provider Arvida Group in a transaction worth up to NZD2bn ($1.2bn).
Under the terms of the agreement, Stonepeak will buy all outstanding common shares of Arvida at NZD1.70 ($1.03) per share, which totals around $1.2bn, including debt.
The purchase price represents a 65% premium to Arvida’s closing share price on the New Zealand Stock Exchange (NZX) on 19 July 2024.
Arvida’s board of directors unanimously recommended the transaction and is expected to close in the fourth quarter of this year, or the first quarter of 2025.
The completion of the transaction is subject to approval by Arvida stockholders, and satisfaction of certain customary conditions precedent and regulatory approvals.
Upon completion, Arvida’s common stock will no longer be listed on the NZX.
Arvida board chair Anthony Beverley said: “As a private entity under Stonepeak’s ownership, Arvida would be able to further strengthen the execution of the company’s multi-faceted strategy.
“We believe Stonepeak has a sound understanding of Arvida and the New Zealand retirement village market, and Stonepeak’s strategy is aligned with Arvida’s values and vision.
“Stonepeak intends to bring significant capital and operational expertise to support Arvida’s senior management team and business plan.”
Arvida, a retirement village operator based in New Zealand, offers several options for aged individuals, ranging from independent living to hospital-level care.
Since its formation in 2014, the company has rapidly expanded to become the fourth-largest operator of retirement villages in the country, with 35 villages across New Zealand.
Goldman Sachs served as financial advisor and with Bell Gully as legal counsel to Stonepeak, on the transaction.
Also, Forsyth Barr Group and Cameron Partners served as financial advisors, while Chapman Tripp offered legal counsel to Arvida.
Stonepeak senior managing director Darren Keogh said: “The quality of care and range of services Arvida provides through its retirement villages are increasingly essential as New Zealand’s ageing population continues to grow in the coming years.
“Arvida has earned a top reputation amongst peers in the region, and we believe – with its established portfolio, attractive development pipeline, and long-term demand tailwinds – that Arvida represents a compelling investment opportunity for our Asia infrastructure strategy.”
