Post-acute healthcare company PACS Group has announced that its subsidiaries signed an agreement for the acquisition of operations at 53 facilities across eight western states in the US, marking a significant expansion in the Pacific Northwest.
This move involves skilled nursing and assisted/independent living facilities, currently managed by Prestige.
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The operations span several states, with Oregon housing 21 facilities, 19 in Washington, six in Idaho, three in Nevada, and a facility each in Alaska, Arizona, California, and Montana.
Together, they have a total of 2,511 skilled nursing beds and 1,334 units for assisted and independent living.
Under the terms of the deal, PACS Group will lease 37 facilities from a real estate joint venture.
The rest of the 16 facilities will be leased from separate third-party landlords.
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By GlobalDataPACS CFO Derick Apt said: “We consider acquisitions, both large and small, when we believe the PACS operating model can thrive in the local markets.
“We look forward to seeing the good that these facilities can provide to their communities in the years to come. And because we will be leasing the facilities on a traditional triple net basis, our up-front capital outlay to do the transaction will consist primarily of the approximately $15m that we’ll invest in the real estate joint venture for our 25% interest.”
This acquisition is part of PACS Group’s strategy to enhance footprint in the healthcare sector.
Subject to necessary conditions and approvals, the deal will conclude in the third quarter of this year.
PACS chairman and CEO Jason Murray said: “We’re thrilled by the opportunity to welcome these 53 Prestige facilities, as well as their staffs and residents, to the PACS family.
“The Delamarter family and the Prestige team have created a great legacy of providing compassionate care over the past many decades, and we look forward to honouring that legacy and supporting the facilities in their mission of providing quality care going forward.”
