SAN JUAN CAPISTRANO, Calif., Nov. 07, 2022 (GLOBE NEWSWIRE) -- The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign™ group of companies, which invest in and provide skilled nursing and senior living services, physical, occupational and speech therapies, other rehabilitative and healthcare services, and real estate, announced today that it has agreed to acquire twenty skilled nursing operations in the state of California, subject to the completion of certain regulatory approvals and other closing conditions. These operations are all owned by Sabra Health Care REIT, Inc. (“Sabra”) (Nasdaq: SBRA) and will transition to Ensign affiliated operating companies subject to a new, long-term triple net master lease.
Barry Port, Ensign’s Chief Executive officer commented, “We are honored that Sabra will be entrusting us with the operation of this portfolio and are very excited to expand our growing relationship with them. These California operations are a perfect fit with our existing footprint in some of our strongest and most mature markets. While this transaction is larger than our typical tuck-ins, our locally-driven approach to acquisitions allows us to rely on our many CEO-caliber leaders in these markets to direct the transitions of each operation in the same way we execute on a one-or two-building acquisition. We look forward to working together with the outstanding leaders and teams already in place in these operations to build on the strong clinical and operational reputations they have earned in their communities.”
Commenting on the news, Rick Matros, CEO and Chair of Sabra, said, "This is an opportunity to expand our relationship with Ensign, substantially improving the credit profile of our portfolio."
The transaction will include 20 properties located in California to two master leases with Ensign operating companies with initial terms of 18 and 20 years, each with an accompanying corporate guarantee from The Ensign Group, Inc. In addition, Ensign expects to sublease three of the operations located in the greater Sacramento area to a third-party operator, subject to Sabra’s consent. The transition of these facilities is expected to be completed by February 1, 2023, upon the satisfaction of all closing conditions.
Upon closing this transaction, Ensign’s growing portfolio will consist of 286 healthcare operations, 3 subleases and 108 owned real estate assets. Mr. Port reaffirmed that the organization is actively seeking several other transactions to acquire real estate and to lease both well-performing and struggling skilled nursing, senior living and other healthcare related businesses throughout the United States.
The Ensign Group, Inc.'s independent operating subsidiaries provide a broad spectrum of skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 269 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.
Sabra Health Care REIT, Inc., a Maryland corporation, operates as a self-administered, self-managed real estate investment trust (a "REIT") that, through its subsidiaries, owns and invests in real estate serving the healthcare industry throughout the United States and Canada.