Healthcare Services Group Acquires NexDine for $93.5 Million

By Greg Peters • Thursday, October 08 01:43 • Permanent Link

Healthcare Services Group said it acquired NexDine Hospitality for an upfront purchase price of $93.5 million, adding a dining and hospitality services business with a strong senior living presence.

The company said the deal could include additional contingent consideration if certain performance targets are met. It funded the transaction with cash on hand.

NexDine is expected to contribute more than $150 million in annual revenue, giving the acquisition a revenue base that is about 1.6 times the upfront purchase price.

HCSG said NexDine will operate as a wholly owned subsidiary, keep its brand, and remain headquartered in Mansfield, Massachusetts. The business will continue under its current leadership, including founder and CEO David Lanci.

The acquisition expands HCSG beyond its core environmental and dietary services business and into senior living and hospitality-driven care markets. As a result of these announcements, the company's shares have moved -0.28% on the market, and are now trading at a price of $21.13. For the full picture, make sure to review HEALTHCARE SERVICES GROUP INC's 8-K report.

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