Kiwi buys back Radius rest homes and hospitals

Kiwi buys back Radius rest homes and hospitals.

Kiwi ownership has been restored at NZ’s fourth largest rest home and hospital provider Radius Residential Care following a major shareholding buyout last week.

Auckland businessman and long time shareholder and director of Radius Residential Care, Brien Cree increased his 20% ownership stake in the company to 57% giving him majority control and ownership of the business. Cree is CEO of Radius Residential Care and together with CFO Suzanne Recchia, sourced private investors to purchase the remaining shareholding balance to help facilitate a complete buyout.

The return to kiwi ownership comes in the wake of news that many of NZ’s primary aged care providers are 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. Prior to the buyout Radius Health Group shared a 67% majority stake in the Residential Care business together with foreign investment bank Kuwait Finance House.

Cree says Radius Health Group was looking to “restructure its balance sheet” and he saw an opportunity to regain control from majority shareholder Kuwait Finance House whose “primary interests were not fully committed to NZ’s aged care sector”.

Radius Residential Care has 21 aged residential rest homes and hospitals nationwide and one retirement village in Hamilton. The company employs approximately 1,200 staff and has total revenues in excess of $60m.

ENDS

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