The Pennant Group Inc. announced on July 11 that it has agreed to acquire Signature Healthcare at Home’s hospice and home health assets for a combined purchase price of $80 million.
Signature Healthcare at Home is a provider of home health and hospice services in the Pacific Northwest, with multiple locations throughout Oregon, Washington and Idaho. Signature employs a team of more than 650 home health and hospice staff. It has an annual revenue of approximately $78 million, home health admissions of more than 12,000 and an average daily hospice census of more than 300, each over the trailing twelve months.
The Pennant Group, Inc. is a holding company of independent operating subsidiaries that provide healthcare services through 115 home health and hospice agencies and 54 senior living communities located in Arizona, California, Colorado, Idaho, Iowa, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming. Each of these businesses is operated by a separate, independent operating subsidiary that has its own management, employees and assets. According to Pennant’s FY 2023 financial reports, the company made a revenue of $545 million during the full year of 2023.
Pennant’s agreement to purchase the Signature assets is reflected in two separate purchase agreements, each subject to customary closing conditions and regulatory approvals. The acquisition 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. The final purchase price is subject to certain adjustment based on potential changes in the business between signing and closing of the agreements.
The acquisition will add to Pennant’s existing strength in the Pacific Northwest region while building out Pennant’s operational footprint. Financial terms of the deal were not disclosed.
According to data captured in the LevinPro HC database, this acquisition represents the 53rd Home Health & Hospice (HH&H) deal of 2024. There were 100 HH&H deals announced during 2023, and 115 announced during 2022. This also marks Pennant’s third deal since the start of 2024. The company acquired South Davis Home Health and South Davis Hospice and Nurses on Wheels in May. Pennant has announced 14 deals since 2020.
