Extendicare Inc. recently entered into a definitive agreement to acquire the Revera Home Health business from Revera Inc. for $83 million in cash, before working capital adjustments, Extendicare has announced.
Both Extendicare and Revera Home Health are based in Canada, with Extendicare having an additional corporate office in Milwaukee, Wis. Extendicare recently competed the first stage of a transaction to lease out its Pennsylvania, Delaware and West Virginia operations to a third party, and executives say the acquisition is a first and important step toward Extendicare’s re-investment into Canada.
“By making this investment, we are pleased to be able to demonstrate that there are significant and attractive near-term opportunities for Extendicare to invest in and grow its existing Canadian business,” said Tim Lukenda, president and CEO of Extendicare, in a statement. “This acquisition enables Extendicare to quickly expand its home health care presence into five additional provinces and broadens our already robust home health care platform.”
Revera Home Health is a private-sector home health care provider in Canada, serving 31 communities across six provinces (Ontario, British Columbia, Alberta, Quebec, Manitoba and Nova Scotia) and employing approximately 5,700 people.
Extendicare, through its ParaMed Home Health Care division, is a private-sector home health care provider in Ontario, with approximately 98% of its revenue generated from government contracts.
Extendicare anticipates the acquisition will initially generate revenue of approximately $189 million, the company said. Extendicare plans to rebrand Revera Home Health under ParaMed.
“We are excited to welcome over 5,700 highly qualified and dedicated employees from Revera Home Health to join ParaMed and its approximately 5,200 caregivers to provide a seamless integration and continuity of care for our home care clients,” Lukenda said. “Together, we believe that we will have an unparalleled ability to meet the needs of Canada’s seniors’ population.”
RBC Capital Markets acted as financial advisor and Bridge financing provider, and Bennett Jones LLP acted as legal advisor to Extendicare in connection with the Transaction.
TD Securities Inc. acted as financial advisor and Goodmans LLP acted as legal advisor to Revera in connection with the Transaction.
Written by Cassandra Dowell