The Ensign Group (Nasdaq: ENSG) this week delivered on a promise to continue its rapid expansion, announcing the acquisition of six more skilled nursing properties — to bring its total portfolio to 208.
The first set of properties includes three buildings in San Antonio, Texas:
- Hunters Pond Rehabilitation and Healthcare, a skilled nursing facility with 128 skilled nursing beds;
- Pecan Valley Rehabilitation and Healthcare, a skilled nursing facility with 124 skilled nursing beds;
- Westover Hills Rehabilitation and Healthcare, a skilled nursing facility with 124 skilled nursing beds.
“We are very excited to add these ideally located operations to our growing presence in the greater San Antonio area,” Ensign CEO Barry Port said in a statement, adding that these acquisitions increase the existing base in San Antonio to eight skilled nursing operations — strengthening its presence in a market that it considers to be among its strongest in Texas.
The deal announcement comes less than a week after Ensign’s management reported robust earnings for the third quarter of the year, and vowed to maintain its rapid growth pace — even accounting for its recent spinoff of non-skilled assets into a separate company, The Pennant Group (Nasdaq: ENSG).
“We are very optimistic that with the continued upside that is inherent in our portfolio, and attractive acquisitions on the horizon, that we will be able to continue to meet or exceed our pre-spin growth rates,” Port said Thursday on the company’s earnings call with analysts and investors.
Keystone Healthcare, Ensign’s operating affiliate in Texas, will assume operation of the San Antonio buildings.
The leaders in the facilities share Keystone’s focus on quality, resident-centered care, and eagerly anticipate being part of the transition process, Keystone president Kevin Niccum said in an email.
“Since each Keystone-affiliated facility operates independently, it is uniquely suited to meet the needs of the community it serves,” Niccum said. “The programs implemented and services offered are tailored to feedback received directly from the community, allowing the staff to be responsive to the specific needs of residents, family members, and clinical partners.”
In a separate transaction, Ensign announced that it had acquired the real estate and operations of three more properties, also to be operated by Keystone:
- Treasure Hills Healthcare and Rehabilitation Center, a 110-bed skilled nursing facility in Harlingen, Texas
- Keller Oaks Healthcare Center, a 146-bed skilled nursing facility in Keller, Texas
- Kirkwood Manor, a 162-bed skilled nursing facility in New Braunfels, Texas
Ensign’s total portfolio has been brought to 208 skilled nursing operations in 13 states — and a total of 218 health care facilities — in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin.