Pennant Group Expands with Major Acquisition in the Southeast
Pennant Group Makes Strategic Acquisition in the Southeast
EAGLE, Idaho - The Pennant Group, Inc. (NASDAQ: PNTG) has recently announced a significant leap forward in its expansion strategy through the acquisition of specific operations from UnitedHealth Group Incorporated. This acquisition was finalized on the first day of October and aligns with the divestiture adjustments from an antitrust settlement involving UnitedHealth and Amedisys Inc.
Details of the Acquisition
Pennant is purchasing divested home health, hospice, and personal care service operations, totaling an impressive purchase price of $146.5 million. This strategic move includes 54 locations, which will enhance Pennant's service capabilities in these critical sectors.
Significance of the Locations
The acquired services are primarily situated in Tennessee. In this region, home health services account for approximately two-thirds of the revenue, while hospice services comprise the remaining third. To ensure a seamless transition, Pennant and UnitedHealth have established a transition services agreement that facilitates operational continuity following the acquisition.
Leadership's Vision
Brent Guerisoli, Pennant's Chief Executive Officer, expressed enthusiasm about this new venture saying, "This marks an exciting new chapter in Pennant’s growth journey." He emphasized that this acquisition isn't just an expansion; it's a strategic initiative to strengthen their position in the Southeast market while empowering emerging leaders through its innovative platform.
Commitment to Excellence
John Gochnour, the Chief Operating Officer, added to this sentiment, stating, "We are pleased to welcome these exceptional teams into the Pennant family." He highlighted the strong operational track record of the acquired agencies, noting their dedication to clinical excellence and established local connections.
Growth Strategy Going Forward
Guerisoli reaffirmed the company’s commitment to pursuing further growth within the home health and senior living sectors. He noted that they will continue to target both strategic and underperforming operations, signaling a robust approach to expanding their footprint across the healthcare landscape.
Expert Guidance and Advisors
In navigating this significant transaction, Pennant leveraged expertise from several notable legal and financial advisors. Legal matters were guided by Robinson & Cole LLP and Paul Hastings LLP, while Truist Securities acted as the financial advisor throughout the negotiations.
About The Pennant Group
The Pennant Group, Inc. stands as a holding company that oversees a multitude of independent subsidiaries. These subsidiaries are dedicated to delivering tailored healthcare solutions through home health and hospice care, in addition to operating senior living communities across various states. Each subsidiary operates independently with its own distinct management and assets, affirming a diversified approach to healthcare service delivery.
For anyone interested in learning more about The Pennant Group, detailed information can be found on their official website at www.pennantgroup.com.
Frequently Asked Questions
What did Pennant Group acquire?
Pennant Group acquired home health, hospice, and personal care service operations from UnitedHealth Group for $146.5 million, including 54 locations.
When was the acquisition finalized?
The acquisition was finalized on October 1, 2025.
What impact does this acquisition have on Pennant Group?
This acquisition strengthens Pennant's presence in the Southeast, positioning it for further growth in the home health and hospice markets.
Who are the advisors for this transaction?
Pennant was advised by Robinson & Cole LLP, Paul Hastings LLP, and Truist Securities.
How does this acquisition align with Pennant's growth strategy?
This move is part of Pennant's ongoing strategy to target strategic and underperforming operations, enhancing its market share and operational capabilities.
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