Texas skilled nursing facilities acquired by Ensign Group

The Ensign Group, Inc. (Nasdaq: ENSG), announced today that it has acquired three Texas skilled nursing facilities: the 93-bed Grand Terrace Rehabilitation & Healthcare Center in McAllen, the 100-bed Alta Vista Rehabilitation & Healthcare in Brownsville; and the 95-bed Veranda Rehabilitation & Healthcare in Harlingen. The acquisitions were effective December 1, 2009.

"These facilities will offer tremendous potential operating synergies as we broaden their current offerings to include higher-acuity services," said Barry Port, President of Ensign's Texas-based Keystone Care subsidiary. He specifically referenced plans to enhance physical, occupational and speech therapy services, as well as to add IV therapy and other services not currently offered in the facilities, over time. He noted that while the former operator had been very good and will be missed, the staff, resident and community response to the new management has been positive.

The three facilities were acquired from The Evangelical Lutheran Good Samaritan Society, the country's largest non-profit provider of senior care and services. Commenting on the sale, the Society's Mark Dickerson said, "The Evangelical Lutheran Good Samaritan Society has been honored to serve the seniors of the Rio Grande Valley for many years. Our prayers and best wishes are with The Ensign Group as they continue our tradition of serving the residents of the Brownsville, Harlingen and McAllen areas."

Mr. Port noted that the three locations provide an excellent fit with Ensign's existing operations in South Texas. All three join Ensign's well-regarded Village Healthcare & Rehabilitation Center in McAllen, which has been serving the Rio Grande Valley since 1969, and has been operated by an Ensign affiliate since 1999.

Christopher Christensen, Ensign's President and Chief Executive Officer, added, "The Valley has been a tremendous part of Ensign's success story, and we couldn't be more pleased to be expanding our service offerings here." He noted that Ensign expects the three facilities, which had a combined occupancy rate of approximately 64% at acquisition, to be operationally accretive to earnings starting in 2010. Ensign purchased the Texas facilities with cash.

Ensign also acquired SunView Care Center, a 127-bed skilled nursing facility in Youngtown, Arizona, a sister community adjacent to Arizona's Sun City retirement community, on December 1st. The Arizona facility was purchased with cash.

Mr. Christensen reaffirmed that Ensign is actively seeking additional opportunities to acquire both well-performing and struggling long-term care operations across the Western United States. The four acquisitions bring Ensign's growing portfolio to 77 facilities, 46 of which are Ensign-owned. Ensign affiliates hold purchase options on nine of the 31 leased facilities.