After asserting that it has aspirational progress plans for 2021, The Pennant Group Inc. (Nasdaq: PNTG) delivered on Thursday because it introduced the acquisition of a house well being company in Colorado.
Pennant Group, headquartered in Eagle, Idaho, is the mum or dad firm of affiliated dwelling care, hospice and senior citizen corporations. Its community consists of 84 hospice and residential care companies and 54 senior communities positioned in 14 states.
The company you’re buying, Pasco Southwest House Well being, gives dwelling well being and private care companies all through Southwest Colorado. It has two places of work, one in Grand Junction and the opposite in Cortez.
“We’re happy to announce the acquisition of Pasco Southwest House Well being,” stated Danny Walker, CEO of Pennant, in a press launch. “This strategic acquisition expands our presence in Colorado and gives a superb foothold for future expansions and new service choices within the space.”
The acquisition grew to become efficient Thursday, in line with the corporate.
The pennant can even not be made on the M&A entrance in 2021, in line with firm president Brent Guerisoli. The corporate will proceed to hunt acquisition alternatives “all through the US,” he stated.
“For greater than 20 years, Pasco Southwest’s devoted workers of physicians and caregivers have set a excessive commonplace of passionate care and repair,” stated Guerisoli. “We sit up for persevering with and constructing on this legacy of remarkable care with Pennant’s world-class instruments and assets.”
In January, the corporate acquired Sacred Coronary heart House Well being Care, which operates in Phoenix and Tucson, Arizona.
The transfer, and corresponding feedback from Pennant’s management workforce, are in keeping with what the corporate described in a February earnings name.
It introduced then that it had expanded its credit score line by $ 75 million to a complete of $ 150 million.
“We have now opportunistically deployed a major quantity of capital within the hospice and residential well being section,” Walker stated in the course of the name. “Our skill to implement even additional continues to develop as a result of we have now a number of wholesome working markets and a robust management portfolio. We’re grateful to our lending companions for entrusting us with elevated borrowing capability to execute our disciplined progress technique. “
Monetary particulars of the deal weren’t disclosed.
The Pennant Group formally went public as a spin-off of the Ensign Group (Nasdaq: ENSG) in 2019. When it went public, the Ensign Group’s dwelling well being, hospice and senior housing companies grew to become half from The Pennant Group.
The corporate was created to create extra progress alternatives for the enterprise, which is now materializing.