PACS Group, Inc. announced today that its subsidiaries have agreed to acquire the operations of 53 skilled nursing and assisted/independent living facilities across 8 western states. The facilities are operated by Prestige, a family company whose legacy of caring for seniors dates back to the 1940s.
The operations are located in 8 states, including Oregon (21 facilities), Washington (19 facilities), Idaho (6 facilities), Nevada (3 facilities), and one facility in each of Alaska, Arizona, California and Montana. The facilities comprise 2,511 skilled nursing beds and 1,334 assisted living and independent living units. The Company will lease 37 of the facilities from a joint venture in which it owns a 25% interest. The remaining 16 facilities will be leased from unaffiliated third-party landlords.
“We’re thrilled by the opportunity to welcome these 53 Prestige facilities, as well as their staffs and residents, to the PACS family,” said Jason Murray, PACS Chairman and CEO. “The Delamarter family and the Prestige team have created a great legacy of providing compassionate care over the past many decades, and we look forward to honoring that legacy and supporting the facilities in their mission of providing quality care going forward.”
Josh Jergensen, PACS President and COO, added, “We’re excited to work with these great Prestige facilities and for PACS to enter 5 new states. We plan to leverage our decentralized leadership model and prior experience with larger portfolio acquisitions to quickly integrate the new facilities after the anticipated closing later this year. We’re looking forward to serving these facilities and their communities.”
Derick Apt, PACS CFO, noted: “The Prestige acquisition illustrates an important element of our growth model in action. We consider acquisitions, both large and small, when we believe the PACS operating model can thrive in the local markets. We look forward to seeing the good that these facilities can provide to their communities in the years to come. And because we will be leasing the facilities on a traditional triple net basis, our up-front capital outlay to do the transaction will consist primarily of the approximately $15 million that we’ll invest in the real estate joint venture for our 25% interest.”
The acquisition of the operations is subject to customary closing conditions, including without limitation the receipt of applicable regulatory approvals and third-party consents. There can be no assurance that the transactions will close in the anticipated timeframe or at all. The Company anticipates that the transactions will close in the third quarter of 2024.