The Ensign Group, Inc. (NASDAQ: ENSG), the parent company of the Ensign™ group of skilled nursing, rehabilitative care services, hospice care and assisted living companies, announced today that it has acquired Lakeland Hills Independent & Assisted Living Community, a 167-unit assisted and independent living facility in Dallas, Texas. The asset acquisition was effective on Monday, August 1, 2011.
"We look forward to expanding both the quality and quantity of residential care services provided to Lakeland's present and future residents, and helping them achieve and maintain the quality of life they deserve," said Maxine Hunter, Lakeland's newly-appointed CEO. Ms. Hunter is a veteran Ensign leader who has most recently made one of Ensign's Houston-area assisted living facilities into the top performer in Ensign's expanding assisted living portfolio, with EBITDAR margins exceeding 45%.
"Maxine has a track record of providing excellent care and a superior living environment, all while achieving outstanding operating results," said John Gurrieri, President of Bridgestone Living, Inc., Ensign's seniors housing subsidiary. Bridgestone and Ensign have expanded Ensign's assisted and independent living base at an accelerated pace over the past twelve months, with significant acquisitions in Denver, Colorado, Ventura, California, Las Vegas, Nevada, Abilene, Texas, Salt Lake City, Utah, and now Dallas.
Mr. Gurrieri noted that the Lakeland acquisition was both opportunistic and strategic, and is expected to enjoy some operating synergies with Ensign's newly-renovated Willowbend Nursing and Rehabilitation Center, a 162-bed skilled nursing facility in nearby Mesquite, Texas, which has been rapidly filling with the completion of a major renovation and expansion project. He also added that Bridgestone expects operations in the Lakeland property, which had an occupancy rate of approximately 89% at acquisition, to be operationally accretive to Ensign earnings starting immediately.
Ensign purchased the Lakeland facility from a well-regarded long-term care company that had operated it for several years, and made the purchase with cash.
Ensign also announced today that it has acquired two other long-term care facilities, both as of August 1, 2011. The first, Oceanview Healthcare and Rehabilitation Center, is a 134-bed skilled nursing facility in Texas, City Texas, which will be operated by a subsidiary of Ensign's Texas-based Keystone Care, Inc. portfolio company. Oceanview had an occupancy rate of approximately 70% at acquisition, and is expected to be operationally accretive to earnings in 2011. It was purchased with cash.
The second, Hurricane Health and Rehabilitation Center, is a 48-bed skilled nursing facility in Hurricane, Utah. Hurricane is part of the dynamic St. George market in Southern Utah, which has long been a vibrant and growing magnet area for seniors and retirees. The facility will be operated by a subsidiary of Milestone Healthcare, Inc., Ensign's Utah-based portfolio company. Hurricane Health had an occupancy rate of approximately 75% at acquisition, and is expected to be operationally accretive to earnings starting immediately. It was also purchased with cash.
Christopher Christensen, Ensign's President and Chief Executive Officer, reaffirmed that Ensign is actively seeking additional opportunities to acquire both well-performing and struggling long-term care operations across the United States. The acquisitions bring Ensign's growing portfolio to 99 healthcare facilities, three hospice companies and three home health businesses in ten states.
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