The Ensign Group Acquires Skilled Nursing Facility in Texas

Rhea-AI Summary

The Ensign Group (Nasdaq: ENSG) has acquired The Medical Lodge of Amarillo, an 82-bed skilled nursing facility in Amarillo, TX, effective November 1, 2020. This acquisition enhances Ensign's operational base in the Amarillo market and is expected to be accretive to earnings in 2021. With this addition, Ensign's portfolio expands to 227 healthcare operations across 13 states, owning 95 real estate assets. CEO Barry Port emphasized the strategic importance of this acquisition for enhancing healthcare service quality and operational synergies.

Positive

• Acquisition of The Medical Lodge of Amarillo strengthens presence in the Amarillo market.
• Expected to be accretive to earnings in 2021.
• Portfolio now includes 227 healthcare operations across 13 states.

Negative

• Acquired facility had a low occupancy rate of 45% at the time of acquisition.

SAN JUAN CAPISTRANO, Calif., Nov. 02, 2020 (GLOBE NEWSWIRE) -- The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign^TM group of companies, which provide skilled nursing and assisted living services, physical, occupational and speech therapies and other rehabilitative and healthcare services, announced today that it acquired the real estate and operations of The Medical Lodge of Amarillo, an 82-bed skilled nursing facility, located in Amarillo, TX. The acquisition was effective November 1, 2020.

“This acquisition broadens our existing operational base in the important Amarillo market,” said Barry Port, Ensign's Chief Executive Officer. “The combination of this facility along with our existing operations in the area further enhances our ability to continue to provide high quality healthcare services and strengthens our existing operating synergies,” he added.   

Kevin Niccum, President of Keystone Care LLC, Ensign’s Texas-based subsidiary, added “We are proud to be joining a wonderful team of caregivers as we strive to become a trusted provider to our present and future patients.” He added that the company expects the newly-acquired facility, which had an occupancy rate of 45% at acquisition, to be accretive to earnings in 2021.   

This acquisition brings Ensign's growing portfolio to 227 healthcare operations, 24 of which also include assisted living operations, across thirteen states.  Ensign owns 95 real estate assets.  Mr. Port reaffirmed that Ensign is actively seeking opportunities to acquire real estate and to lease both well-performing and struggling skilled nursing, assisted living and other healthcare related businesses throughout the United States.

About Ensign^TM

The Ensign Group, Inc.'s independent operating subsidiaries provide a broad spectrum of skilled nursing and assisted living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 227 healthcare facilities, in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin. More information about Ensign is available at http://www.ensigngroup.net.

Contact Information

The Ensign Group, Inc., (949) 487-9500, ir@ensigngroup.net

SOURCE: The Ensign Group, Inc.

FAQ

What is the significance of Ensign's acquisition of The Medical Lodge of Amarillo?

The acquisition strengthens Ensign's operational base in Amarillo and is expected to enhance earnings.

What is the occupancy rate of The Medical Lodge of Amarillo at the time of acquisition?

The facility had an occupancy rate of 45% at the time of acquisition.

How many healthcare operations does Ensign have after this acquisition?

Ensign's portfolio expands to 227 healthcare operations across 13 states.

What is the expected impact of the acquisition on Ensign's earnings?

The acquisition is anticipated to be accretive to earnings in 2021.