After announcing that it has aspirational growth plans for 2021, The Pennant Group Inc. (Nasdaq: PNTG) delivered on Thursday, as it announced the acquisition of a Colorado home health agency.
The Eagle, Idaho-based Pennant Group is the parent company of affiliated home health, hospice and senior living companies. Included in its network are 84 home health and hospice agencies, and 54 senior living communities, located throughout 14 states.
The agency it’s acquiring — Pasco Southwest Home Health — provides home health and personal care services throughout Southwest Colorado. It has two offices, one in Grand Junction and the other in Cortez.
“We are pleased to announce the acquisition of Pasco Southwest Home Health,” Danny Walker, Pennant’s Chief Executive Officer, said in a press release. “This strategic acquisition expands our footprint in Colorado and provides an excellent foothold for future expansion and new service offerings in the area.”
The acquisition was effective Thursday, according to the company.
Pennant is not done on the M&A front in 2021 either, according to company President Brent Guerisoli. The company will continue to pursue acquisition opportunities “throughout the United States,” it noted.
“For more than two decades, Pasco Southwest’s dedicated staff of clinicians and caregivers have set a high benchmark for passionate care and service,” Guerisoli said. “We look forward to continuing and building upon this legacy of outstanding care with Pennant’s world-class tools and resources.”
In January, the company acquired Sacred Heart Home Health Care, which operates in Phoenix and Tucson, Arizona.
The move — and the Pennant leadership team’s corresponding comments — are in line with what the company outlined in a February earnings call.
It announced then that it had extended its credit facility by $75 million to a total of $150 million.
“We have deployed a significant amount of capital opportunistically in the home health and hospice segment,” Walker said during the call. “Our capacity to deploy even more continues to increase because we have multiple healthy operating markets and a strong leadership pipeline. We are grateful to our lending partners for entrusting us with increased borrowing capacity to execute our disciplined growth strategy.”
Financial details of the deal were not disclosed.
The Pennant Group officially went public as a spinoff of the Ensign Group (Nasdaq: ENSG) in 2019. When it did go public, the Ensign Group’s home health, hospice and senior living businesses became a part of The Pennant Group.
The company was created to create more growth opportunities for the business, which is now coming to fruition.