EAGLE, Idaho — The Pennant Group Inc. (NASDAQ: PNTG), the Eagle-based parent company of operating subsidiaries that provide home health, hospice and senior living services, has completed its spin-off from The Ensign Group Inc. (NASDAQ: ENSG).
Ensign is a publicly traded seniors housing owner-operator based in Mission Viejo, California. The company’s stockholders received one share of Pennant common stock for every two shares of Ensign common stock held at the close of business on Sept. 20, 2019. No fractional shares have been distributed in connection with the spin-off, and a cash payment will be made in lieu of any fractional shares.
This is Ensign’s second spin-off following the founding of CareTrust REIT Inc. in 2014.
“Our intention from the beginning of this transaction was to create two companies that had healthy balance sheets, plenty of dry powder to execute on our disciplined acquisition strategies and a group of ownership-minded leaders that are committed to realizing the significant organic growth potential in each organization,” says Christopher Christensen, Ensign’s executive chairman and a Pennant director. “While we set out as two separate companies pursuing our independent strategies, we know our shared core values, guiding principles and leadership model will create many opportunities to collaborate to meet the needs of patients in local healthcare communities.”
BofA Merrill Lynch served as lead financial advisor to Ensign in connection with the spin-off. Kirkland & Ellis LLP served as legal advisor to Ensign.
The Pennant Group is a holding company of independent operating subsidiaries that provide healthcare services through 63 home health and hospice agencies and 52 senior living communities located throughout Arizona, California, Colorado, Idaho, Iowa, 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.