Emeritus Corporation (NYSE: ESC), a national provider of senior living services, today announced that it has entered into an agreement to purchase the Weston Group, Inc. and related entities (the "Weston Group"), which provide rehabilitation services and medical equipment products to the senior living industry.
“This is a particularly meaningful opportunity for Emeritus to expand our services into the complementary rehab therapy business. We have the tremendous potential to expand this new line of business throughout all of the Emeritus communities, as well as through external growth.”
Mr. Granger Cobb, President and Co-CEO of Emeritus, stated, "This is a particularly meaningful opportunity for Emeritus to expand our services into the complementary rehab therapy business. We have the tremendous potential to expand this new line of business throughout all of the Emeritus communities, as well as through external growth."
The Company will acquire the Weston Group for a purchase price of $18.0 million.
The Weston Group's annual revenues approximate $37.0 million; Emeritus accounts for approximately a third of these revenues, which represents service in approximately 50 communities. Mr. Cobb further stated, "Similar to the experience of other senior living providers, the addition of these rehab therapy services will provide significant top and bottom line growth as they are rolled out throughout the country."
Mr. Randy Weston, the principal of the Weston Group, will serve as President of the new entity.
This purchase agreement is contingent upon several customary closing conditions and is expected to be completed in early 2011.