Pennant Group to Acquire Pacific NW Home Health Provider for $80M

The Pennant Group is set to acquire a home health provider in the Pacific Northwest for $80 million. This strategic acquisition aims to enhance Pennant's healthcare services and expand its regional presence, reflecting the company's commitment to growth and improved patient care. The deal underscores the company's efforts to strengthen its portfolio and deliver comprehensive home health services in the Pacific Northwest.

Boston Brand Media brings you news on - The Pennant Group (Nasdaq: PNTG) has finalized an agreement to acquire assets from certain affiliates of Signature Healthcare at Home for $80 million.

“This is a significant acquisition in Pennant’s history,” Pennant CEO Brent Guerisoli stated in a press release. “We are thrilled to make this investment due to the quality of Signature’s personnel and operations. Their locations, philosophy, and culture perfectly complement our existing operations in the Pacific Northwest. A key aspect of Pennant’s disciplined growth strategy is making acquisitions from a position of strength, with solid leaders and well-performing operations.”

Signature provides home health and hospice services throughout Oregon, Washington, and Idaho, employing over 650 staff members in these sectors.

The acquisition will enable Pennant to expand its presence in Washington and Idaho and add seven more locations in Oregon.

Based in Eagle, Idaho, Pennant is a holding company with independent operating subsidiaries across the U.S., encompassing 115 home health and hospice agencies and 54 senior living communities.

Signature generates annual revenue of $78 million.

Additionally, Signature records over 12,000 home health admissions annually and maintains an average daily hospice census of more than 300.

According to an analyst note from Stephens, “The deal is expected to contribute an incremental +13% in revenue, +25% in home health admissions, and +3% in hospice ADC.”

The acquisition involves two separate transactions: the sale of Signature’s Washington and Idaho assets, set to close on Aug. 1, 2024, and the sale of its Oregon assets, expected to close on Jan. 1, 2025.

“We have known Signature and its leaders for years, including through the acquisition of their Northern Utah and Eastern Idaho locations several years ago,” John Gochnour, president and COO of Pennant, commented in the press release. “We deeply respect the talented team they have built and their impact on many communities in Oregon and Washington that we do not currently serve. As we integrate these operations into the Pennant family, we are pleased to enhance our presence in these key states and provide Signature’s leaders and staff the opportunity to benefit from our innovative operating model and leadership development programs while implementing clinical and operational best practices that will benefit patients and their communities.”

Gochnour emphasized that Pennant will remain aggressive in mergers and acquisitions. The company intends to target strategic and underperforming home health, hospice, and senior living operations of all sizes for potential acquisitions.

Boston Brand Media also found that recently, Pennant formed a partnership with Hartford HealthCare at Home, the home health and hospice division of Hartford HealthCare, to offer management and consulting services. This partnership marked Pennant’s first expansion to the East Coast.

In May, Pennant announced the acquisition of South Davis Home Health and South Davis Hospice, based in Davis County, Utah, which expanded Pennant’s operations in Utah.

For questions or comments write to writers@bostonbrandmedia.com

Source: homehealthcarenews‍