Extendicare Inc. completed the acquisition of a 15 percent stake in a Portfolio of 24 Long Term Care Homes from Revera Inc. and Axium Infrastructure Inc.
August 31, 2023
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Extendicare Inc. (TSX:EXE) entered into an agreement to acquire a 15 percent stake in a Portfolio of 24 Long Term Care Homes from Revera Inc. on March 1, 2022. Extendicare will acquire a 15% managed interest in 18 ?class A? long-term care homes located in Ontario and six homes in Manitoba. The remaining 85% interest will continue to be owned by an affiliate of Axium. Relatedly, on closing of the Acquisition, Extendicare will enter into management contracts with Revera to manage all of Revera?s other long-term care homes, which comprise 31 ?class C? homes located in Ontario and one personal care home located in Manitoba. Extendicare will also enter into development arrangement agreements with Revera in respect of the potential redevelopment of those managed ?class C? homes in Ontario into new homes. The aggregate cash consideration for the Transactions is approximately CAD 36.0 million plus the assumption of approximately CAD 34.0 million in debt, subject to customary adjustments. Certain of the associated debt will be refinanced or repaid on or before closing, resulting in changes in the allocation between cash consideration and debt assumption. The purchase price is expected to be funded from cash on hand. Closing of the Axium Transaction is subject to customary closing conditions, including receipt of regulatory approvals from the Ontario Ministry of Long-Term Care, and is not conditional on financing or due diligence. As of May 4, 2023, the transaction is expected to close by the end of Q3 2023. BMO Capital Markets is acting as financial advisor to Extendicare and Simon Knowling, Graham Rawlinson, Susan Nickerson, Craig Maurice and Nina Mansoori of Torys LLP is acting as legal advisor to Extendicare in connection with the Transactions. Stikeman Elliott LLP is acting as legal advisor to Axium in connection with the Transactions. Stormont Partners Advisory is acting as financial advisor to Revera and Goodmans LLP is acting as legal advisor to Revera in connection with the Revera Transactions.
Extendicare Inc. (TSX:EXE) completed the acquisition of a 15 percent stake in a Portfolio of 24 Long Term Care Homes from Revera Inc. and Axium Infrastructure Inc. on August 1, 2023.
Extendicare Inc. is a provider of care and services for seniors across Canada. The Company operates under the Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Partner Network brands. The Company operates through four segments: Long-term Care, Home Health Care, Managed Services and Corporate. Its Long-term Care segment includes over 53 long-term care homes, which it owns and operates in Canada. Its Home Health Care segment operates through its subsidiary, ParaMed, which provides complex nursing care, occupational, physical and speech therapy, and assistance with daily activities. Its Managed Services segment includes its management, consulting and group purchasing divisions. Through the Extendicare Assist division, it provides management and consulting services to third parties, and through the SGP Purchasing Partner Network division, it offers purchasing contracts to other senior care providers for food, capital equipment, furnishings, cleaning, nursing supplies, and more.
Extendicare Inc. completed the acquisition of a 15 percent stake in a Portfolio of 24 Long Term Care Homes from Revera Inc. and Axium Infrastructure Inc.