Extendicare windfall to finance assisted living purchase
Extendicare Inc.'s 34.8% interest in Crown Life Insurance Company will bring the company a $66.8 million cash dividend to help fund a recently announced assisted living operator acquisition, Extendicare announced Thursday.
Crown Life has declared a dividend payable in the amount of $60.00 per common share. Extendicare will use the funds received from the company to fund the purchase of Assisted Living Concepts, Inc. in Dallas. Extendicare's carrying value in Crown Life will be reduced from $128.9 million as of Sept. 30, 2004, to $62.1 million.
Extendicare's acquisition of ALC is expected to close in early 2005, adding 177 assisted living facilities to the Ontario-based company's portfolio. The total transaction is estimated at $280 million to be paid through the assumption of ALC's debt of about $138 million and the balance from cash on hand and available lines of credit.
Extendicare currently operates 266 long-term care facilities across North America.