The Pennant Group has spun off from San Juan Capistrano, CA-based The Ensign Group, the organizations announced Tuesday. The new company is based in Eagle, ID.
Pennant includes substantially all of Ensign’s former independent living, assisted living and memory care operations (Pinnacle Senior Living), plus its home health and hospice operations (Cornerstone Healthcare). The holding company’s independent operating subsidiaries provide services in Arizona, California, Colorado, Idaho, Iowa, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming.
“We are excited about the next chapter of our story and particularly look forward to maintaining a close relationship with Ensign through the Ensign Pennant Care Continuum,” Pennant Chairman, CEO and President Daniel H Walker said. “The EPCC memorializes the relationship Ensign and Pennant independent operating subsidiaries have historically had by providing those that opt in a framework to share data and create care pathways that will help us achieve the highest possible outcomes in transitions between care settings.”
The transaction does not represent a “one-time value-creation event,” Walker said, “but rather a catalyst that will multiply the leadership, acquisition and organic growth opportunities across both organizations that we believe will generate even more long-term value for our various stakeholders.”
Ensign stockholders received one share of Pennant common stock for every two shares of Ensign common stock held at the close of business on Sept. 20. Ensign continues to be listed on Nasdaq under the symbol ENSG, and Pennant is listed under the symbol PNTG.
Ensign will retain all existing owned real estate assets, company CEO Barry Port said.
“We will actively continue to pursue the purchase of additional real estate assets and now own 82 real estate assets, including the new service center location and the 29 senior living assets that will be leased by Pennant following the spin-off,” he said. “We will continue to watch the growing underlying value in our owned real estate and other new business ventures and are excited about the additional potential opportunities that each of those businesses gives us in the future.”
When Ensign spun off CareTrust REIT in 2014, 94 assets were involved, Port noted.