Ensign subsidiary acquires Zion's Way Home Health and Hospice

The Ensign Group, Inc. (NASDAQ: ENSG), announced today that an Ensign subsidiary has acquired Zion's Way Home Health and Hospice, a well-regarded home health and hospice agency based in St. George, Utah, with branch offices in the cities of Kanab, Utah and Page, Arizona. The acquisition was effective as of April 1, 2012.

"We are pleased with the measured growth and development of our home health and hospice businesses thus far, and this lateral diversification broadens Ensign's reach into that business," said Christopher Christensen, Ensign's President and Chief Executive Officer. "More importantly," he added, "the Zion's Way acquisition reflects the increasing depth of our long-term commitment to the vibrant Southern Utah healthcare community and our existing operations there."

Zion's Way was founded in 2005 by Shirley Bagby, a fixture in Southern Utah's healthcare community, and will be operated by a subsidiary of Cornerstone Healthcare, Inc., Ensign's home health and hospice-based portfolio subsidiary. "We are grateful that Ms. Bagby has entrusted us to continue growing and enhancing what she's built," said Daniel Walker, Cornerstone's President. "We admire the great work done by the former owners and the incredible Zion's Way team of caregivers, and look forward to working together to strengthen our partnerships with patients and their families to provide superior care," he added.    

Zion's Way joins Horizon Home Health and Hospice, a home health and hospice operation in Idaho, Custom Care Hospice, a hospice operation in the Dallas, Texas market, Symbii Home Health and Hospice, a home health and hospice operation in the Salt Lake City, Utah market, Homecare Solutions, a home health agency in Denver, Colorado, Careage Home Care, a home health agency in Cherokee, Iowa and Connected Home Health, a home health agency in Portland, Oregon.

Ensign purchased the agency with cash, and expects the transaction to be mildly dilutive to earnings in 2012.  Mr. Christensen reaffirmed that Ensign is actively seeking additional opportunities to acquire both well-performing and struggling skilled nursing, assisted living and other healthcare-related businesses across the United States.