Stonepeak to Acquire Arvida Group
July 21 2024 - 4:05PM
Business Wire
Stonepeak, a leading alternative investment firm specializing in
infrastructure and real assets, today announced that it has entered
into a definitive agreement to acquire all outstanding common
shares of Arvida Group Limited (“Arvida” or the “Company”) (NZX:
ARV), one of New Zealand’s largest retirement and aged care
providers, for US$1.03 (NZ$1.70) per share in an all-cash
transaction valued at approximately US$1.25 billion (NZ$2 billion)
including the assumption of debt.
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The purchase price represents a premium of 65% to Arvida’s
closing share price on the New Zealand NZX Main Board stock
exchange (“NZX”) on July 19, 2024, the last trading day prior to
the announcement of the transaction.
Arvida is a leading New Zealand-based retirement village
operator that offers a range of living options to meet the needs of
aged individuals including independent living and hospital-level
care. Demand for high-quality retirement living in New Zealand has
demonstrated strong resiliency through cycles and attractive growth
in recent years. The Company has grown rapidly since its formation
in 2014 and is now the fourth largest operator of retirement
villages in the country with 35 villages throughout New Zealand.
Arvida has the ability to develop upwards of 2,100 additional
residences.
Anthony Beverley, Chair of the Board at Arvida, 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: to sustain and enhance Arvida’s core business; to develop
quality communities; to acquire complementary properties; and to
deliver quality services to aging communities. 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.”
Darren Keogh, Senior Managing Director at Stonepeak, said, “The
quality of care and range of services Arvida provides through its
retirement villages are increasingly essential as New Zealand’s
aging 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.”
The transaction has been unanimously recommended by the Arvida
Board of Directors and is expected to close in the fourth quarter
of 2024 or the first quarter of 2025, subject to approval by Arvida
stockholders, and following satisfaction of customary conditions
precedent and regulatory approvals.
Subject to and upon completion of the transaction, Arvida’s
common stock will no longer be listed on the NZX.
Goldman Sachs is acting as Stonepeak’s financial advisor, and
Bell Gully is serving as Stonepeak’s legal counsel. Forsyth Barr
Group Limited and Cameron Partners Limited are acting as Arvida’s
financial advisors, and Chapman Tripp is serving as Arvida’s legal
counsel.
About Stonepeak
Stonepeak is a leading alternative investment firm specializing
in infrastructure and real assets with approximately $71.2 billion
of assets under management. Through its investment in defensive,
hard-asset businesses globally, Stonepeak aims to create value for
its investors and portfolio companies, with a focus on downside
protection and strong risk-adjusted returns. Stonepeak, as sponsor
of private equity and credit investment vehicles, provides capital,
operational support, and committed partnership to grow investments
in its target sectors, which include communications, energy and
energy transition, transport and logistics, and real estate.
Stonepeak is headquartered in New York with offices in Hong Kong,
Houston, London, Singapore, and Sydney. For more information,
please visit www.stonepeak.com.
About Arvida
Arvida is one of New Zealand’s largest aged care providers
owning and operating 35 retirement villages located nationally.
Each village operates independently under a corporate structure
that supports village operations to ensure quality and consistency
of service. Arvida provides a range of living and lifestyle options
from independent living to full rest home, hospital and
dementia-level care.
Arvida’s growth strategy includes the targeted development of
new villages in areas that are supported by a strong demographic
and economic profile and acquisition of quality villages that meet
strict acquisition criteria as well as the development of
additional facilities at existing villages.
Arvida is listed on the NZX (NZX: ARV). Website:
www.arvida.co.nz
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Stonepeak Kate Beers / Maya Brounstein
corporatecomms@stonepeak.com +1 (646) 540-5225
Jack Gordon jack.gordon@sodali.com +61 478 060 362
Arvida Geoff Senescall, Senescall Akers
senescall@senescallakers.co.nz +64 21 481 234