The Ensign Group, Inc. (Nasdaq: ENSG) has announced it is moving forward in the upcoming completion of its healthcare and real estate business split into two separate and independent, publicly-traded companies: The Ensign Group, Inc. and CareTrust REIT, Inc.
The company announced the REIT spinoff earlier this year and said this week it is nearing completion.
Ensign will effect the separation through a spinoff in which it will distribute all of the outstanding shares of CareTrust common stock to Ensign’s stockholders on a pro rata basis. The distribution will be made to Ensign stockholders on May 22, the record date for the distribution. The spin-off will take effect June 1, and shares are expected to be distributed June 2.
The Ensign Group, Inc. will continue to acquire real estate and provide healthcare services through its existing and future operations. CareTrust REIT, Inc. will own, acquire and lease real estate serving the healthcare industry.
Earlier this month, The Ensign Group, Inc. acquired one skilled nursing facility in Arizona, two California senior care communities and a senior care facility in Utah.
When announcing the California acquisitions, President and CEO Christopher Christensen said, “We hope that these recent acquisitions will add clarity to Ensign’s strategy following the spin-off, which is to continue to acquire and retain the real estate assets for both well-performing and struggling skilled nursing facilities across the United States.”
Ensign’s independent operating subsidiaries provide rehabilitative and healthcare services at 122 facilities, eight hospice companies, 10 home health businesses and 11 urgent care clinics across the United States.
Following the spinoff, CareTrust will be a separate publicly traded company independent from Ensign, and Ensign will not retain any CareTrust common stock. Ensign will continue to be listed on NASDAQ under the symbol “ENSG,” while CareTrust expects to list its common stock on NASDAQ under the symbol “CTRE.”
Ensign Executive Vice President and Secretary Gregory K. Stapley will become the president and Chief Executive Officer of CareTrust. Other than Stapley, Ensign’s current management team will continue in place. Ensign’s board of directors appointed Chad A. Keetch to succeed Stapley as Ensign’s executive vice president and secretary June 1. Christensen, Ensign president and CEO, will also serve as a CareTrust director during a transitional period.
Written by Cassandra Dowell