The Pennant Group Acquires Two Home Health Agencies from Signature Healthcare at Home
EAGLE, Idaho, July 01, 2020 (GLOBE NEWSWIRE) — The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice and senior living companies, today announced that it has acquired the assets of two home health agencies and two hospice agencies with multiple locations across Southeastern Idaho and Northern Utah. The acquisition was effective July 1, 2020.
“We are pleased to be entrusted with these agencies to further the excellent care these local teams provide to patients and their families,” said Daniel Walker, Pennant’s Chief Executive Officer. “This off-market acquisition is further evidence our cluster-driven disciplined growth strategy enables us to execute on multiple transactions across different markets through various regulatory and operating environments,” he added.
“We are thrilled to welcome these local teams into the Pennant family and look forward to building on what they have already accomplished as we seek to provide life-changing service to more communities in Utah and Idaho,” said Brent Guerisoli, President of Cornerstone Healthcare, Pennant’s home health and hospice portfolio company. He added, “These agencies help us expand on our strong presence in both states, bolstering the care we can deliver to a broader addressable population and providing additional growth opportunities in adjacent markets.”
The financial terms of the deal were not disclosed. The Pennant Group came to fruition last year, a spinoff of the Ensign Group (Nasdaq: ENSG). Before the newly announced deal, Pennant’s portfolio included 65 home health and hospice agencies, plus 53 senior living communities across 14 states.
Headquartered in Eagle, Idaho, Pennant acquired the assets of two home health agencies from Signature Healthcare at Home, a Wilsonville, Oregon-based home care, home health, palliative care, primary care and hospice provider. Additionally, the company acquired the assets of two hospice providers from Signature Healthcare at Home as a part of the same transaction.
“We are pleased to be entrusted with these agencies to further the excellent care these local teams provide to patients and their families,” Daniel Walker, Pennant’s CEO, said in a press release. “This off-market acquisition is further evidence our cluster-driven disciplined growth strategy enables us to execute on multiple transactions across different markets through various regulatory and operating environments.”
The offices in both Idaho and Utah will operate under the name: Symbii Home Health and Hospice. The company partnered with Signature Healthcare at Home on a prior transaction when The Pennant Group acquired its Afton, Wyoming location in 2018.
During the Pennant Group’s first-quarter 2020 earnings call in May, the company’s leadership expressed that COVID-19-related disruption could be a potential growth opportunity in the upcoming months.
“Through the pandemic, we continue to maintain a robust pipeline of acquisition opportunities,” Derek Bunker, the company’s chief investment officer, said on the call. “We understand that some investments with the highest returns are executed during periods of disruption. So an important part of our pandemic response was improving our cash position and revolver availability to be ready to move quickly for the right opportunities.”
At the time, Bunker stated that the impact of the public health emergency could leave the door open for consolidation within the industry. “We think that there are many more opportunities for consolidation as pandemic headwinds persist and disproportionately affect some operators that will be looking for the right strategic buyer,” Bunker said.
Mr. Walker reaffirmed that Pennant continues to pursue opportunities to acquire home health, hospice and senior living businesses throughout the United States.
About Pennant:
The Pennant Group, Inc. is a holding company of independent operating subsidiaries that provide healthcare services through 71 home health and hospice agencies and 53 senior living communities located throughout Arizona, California, Colorado, Idaho, Iowa, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming. Each of these businesses is operated by a separate, independent operating subsidiary that has its own management, employees and assets. References herein to the consolidated “company” and “its” assets and activities, as well as the use of the terms “we,” “us,” “its” and similar verbiage, are not meant to imply that The Pennant Group, Inc. has direct operating assets, employees or revenue, or that any of the home health and hospice businesses, senior living communities or the Service Center are operated by the same entity.
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