Extendicare completes deal for Texas chain, reports earning increase
Extendicare Inc. announced it would buy Assisted Living Concepts Inc. of Dallas in a $280 million deal, while also declaring it had realized an increase in third-quarter profits.
Toronto-based Extendicare, Canada's largest nursing home operator, on Thursday announced earnings of $19.6 million, or 28 cents a share, for the third quarter ended Sept. 30. That compares with profits of $13.8 million, or 19 cents a share, for the same period last year. The company's quarterly revenues increased to $445.6 million from $433 million.
Extendicare and its wholly owned subsidiary Extendicare Health Services finalized the acquisition of Assisted Living Concepts for $18.50 a share, or a total purchase price of about $132 million. Extendicare will also cover ALC assumed debt, bringing the overall deal's value up to about $280 million. The transaction is expected to close in the first quarter of 2005.
ALC operates 177 assisted living facilities in 14 states. Extendicare operates 266 long-term care facilities and also sells medical specialty services such as subacute care and rehabilitative services, as well as home health care services in the U.S. and Canada.