Extendicare closes $870 million sale of its U.S. facilities

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Extendicare has closed the $870 million sale of its U.S. operations to an investor group led by private equity firm Formation Capital LLC.

The portfolio, which was first announced in late 2014, includes around 160 senior care communities. The finalized deal also includes 10 skilled nursing centers excluded from the initial sale, which add up to about $11 million.

An Extendicare official told McKnight's in 2013 that the company intended to sell its U.S. businesses due in part to uncertainty created by the country's healthcare reform. Extendicare is expected to use the money generated by the sale to increase its presence in the Canadian private-pay retirement community sector.