The Ensign Group (NASDAQ: ENSG) subsidiaries have agreed to acquire nine skilled nursing and assisted living facilities Careage Management, LLC for an undisclosed amount.
Expected to close in July 2011, the facilities include 549 skilled nursing beds and 72 assisted living units. The pending transaction also includes Careage Home Care, a home health agency based in Cherokee, Iowa.
“Having had the opportunity to tour several Ensign facilities and visit with their staff and residents, we determined that Ensign best shares our philosophy of resident-centered care and providing a loving, dignified, home-like environment within the communities we serve,” said Dan Myers, President and CEO of Careage.
Careage co-owner Greg Grupp noted that Ann Myers, head of Careage nursing and quality assurance, and Dan Myers will remain with the incoming Ensign operators for an indefinite period to ensure a smooth transition.
“We are anxious to build on Careage’s outstanding reputation for resident care and patient outcomes,” said Mike Dalton, President of Bandera Healthcare, Inc., the Ensign subsidiary overseeing the transition. “We admire the great work done by the Careage owners and the incredible Careage staff, and we look forward to working with them as we strive to strengthen partnerships with families and residents to provide quality care.” He added that Ensign expects the Careage operations to be accretive to Ensign’s consolidated earnings in 2011.
Ensign said it hopes to close the acquisition in July 2011.
