The Ensign Group, Inc. (Nasdaq: ENSG), a San Juan Capistrano provider of senior living services, said it’s agreed to acquire 20 skilled nursing operations in California from Irvine-based Sabra Health Care REIT (Nasdaq: SBRA).
The facilities will transition to Ensign-affiliated operating companies subject to a new, long-term triple-net master lease. The sale price wasn’t disclosed.
“These California operations are a perfect fit with our existing footprint in some of our strongest and most mature markets,” Ensign Chief Executive Barry Port said in a statement. “While this transaction is larger than our typical tuck-ins, our locally-driven approach to acquisitions allows us to rely on our many CEO-caliber leaders in these markets to direct the transitions of each operation in the same way we execute on a one-or two-building acquisition.”
Sabra CEO Rick Matros said the sale will “substantially” improve its credit profile.
The transition of these facilities is expected to be completed by Feb. 1. After closing, Ensign’s portfolio will consist of 286 healthcare operations, 3 subleases and 108 owned real estate assets.
After the announcement, Sabra shares rose 2.4% to $14.07 in after-hours trading. It has a $3.2 billion market cap.
Shares of Ensign were unchanged in after-hours trading at $92.01 and a $5.1 billion market cap.