The Pennant Group, Inc. (NASDAQ: PNTG) has announced its agreement to purchase the assets of Signature Healthcare at Home for a combined purchase price of $80,000,000. Signature is a key provider of home health and hospice services in the Pacific Northwest, with multiple locations throughout Oregon, Washington, and Idaho.
Signature's team includes over 650 dedicated home health and hospice staff, with annual revenue of approximately $75 million. Over the trailing twelve months, Signature has seen home health admissions of over 12,000 and an average daily hospice census of over 300.
The acquisition will add to Pennant’s existing strength in the region. In Washington, Signature’s locations in Bellingham, Burlington, Everett, and Federal Way will complement Pennant’s existing operations along the I-5 corridor. In Oregon, the purchase will add seven locations in key population centers across the state, where Pennant currently operates in Portland and Grants Pass. In Idaho, Signature’s operations in Nampa and Payette will reinforce Pennant’s leading position in Southwest Idaho.
The agreement is reflected in two separate purchase agreements, each subject to customary closing conditions and regulatory approvals. The purchase of the Washington and Idaho assets is anticipated to close on August 1, 2024, while the purchase of the Oregon assets is anticipated to close on January 1, 2025.
Pennant's Chief Executive Officer, Brent Guerisoli, noted that this is a significant acquisition in Pennant’s history and highlighted the quality of Signature’s people and operations. The company aims to make acquisitions from a foundation of strength, where it has solid existing leaders and well-performing operations.
Mary Kofstad, President of Signature Healthcare at Home, expressed excitement about the acquisition, emphasizing the shared commitment to the mission of enhancing the lives of those they serve, similar core values, and focus on the growth and development of leadership and clinical teams.
John Gochnour, Pennant’s President and Chief Operating Officer, mentioned the respect for the talented team at Signature and the impact they have had on many communities across Oregon and Washington. He indicated that as Pennant transitions these operations into its fold, it will deepen its presence in these key states and provide Signature’s leaders and staff with the opportunity to benefit from its innovative operating model and leadership development programs.
Pennant currently operates through 117 home health and hospice agencies and 54 senior living communities located throughout several states, including Arizona, California, Colorado, Idaho, Oregon, Washington, and others.
This acquisition reflects Pennant’s continued pursuit of opportunities for growth in the home health, hospice, and senior living industries. Following these announcements, the company's shares moved 3.2%, and are now trading at a price of $25.34. For more information, read the company's full 8-K submission here.
