PACS Group's Jason Murray

PACS Group is on an accelerated growth trajectory since going public earlier this month.

The outlook for the company “remains strong, with a robust acquisition pipeline and continued improvement both clinically and financially in the operations we’ve recently acquired,” CEO Jason Murray said previously. “We’ll continue to seek out the right facilities and the right markets for acquisition to expand our operational reach.”

The Farmington, UT-based holding company announced plans Thursday for subsidiaries to acquire the operations of 53 skilled nursing facilities and senior living communities across eight western states. The properties currently are being operated by Prestige Care or Prestige Senior Living.

The company anticipates that the transactions will close in the third quarter.

PACS Group already is one of the country’s largest nursing home operators. Founded in 2013, the company’s portfolio includes more than 200 facilities, mostly SNFs but also some assisted living communities. The senior living communities being acquired include independent living and assisted living.

“We don’t have that many assisted living facilities or that many assisted living beds. We knew that as we were looking at this particular deal that there were quite a few assisted living beds that came along with it,” Murray told McKnight’s as part of a broad interview Thursday. “It really helped us double down on this idea that we need to continue to develop this vertical within our company. It can be a very complimentary business to skilled nursing, but skilled nursing is our core business.”

PACS Group will acquire 21 properties in Oregon, 19 in Washington, six in Idaho and three in Nevada. Additionally, the company is adding one community each Alaska, Arizona, California and Montana. Collectively, the transaction includes a total of 2,511 skilled nursing beds and 1,334 senior living units. 

PACS Group plans to lease 37 of the properties from a joint venture in which it owns a 25% interest. The remaining 16 properties will be leased from unaffiliated third-party landlord, the company said.
“The Prestige acquisition illustrates an important element of our growth model in action. We consider acquisitions, both large and small, when we believe the PACS operating model can thrive in the local markets. We look forward to seeing the good that these facilities can provide to their communities in the years to come,” PACS Group Chief Financial Officer Derick Apt said in a statement. “And because we will be leasing the facilities on a traditional triple net basis, our up-front capital outlay to do the transaction will consist primarily of the approximately $15 million that we’ll invest in the real estate joint venture for our 25% interest.”