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Ensign Group (ENSG) on Buyout Binge for Portfolio Boost
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The Ensign Group, Inc. (ENSG - Free Report) continued with its acquisition spree by purchasing the operations of Amarsi Assisted Living in Glendale and Citadel Assisted Living Facility in Mesa, both in Arizona.
The latest buyouts helped ENSG further penetrate the US state. The deals were effective Mar 1, 2022. Both acquisitions will be subject to a long-term, triple net lease. The operations belong to a healthcare campus consisting of skilled nursing services operated by Ensign Group affiliates.
In a separate deal on the same day, ENSG’s affiliates bought the real estate and operations of The Waterton Healthcare and Rehabilitation in Tyler, TX, effective Mar 1, 2022.
Post these deals, Ensign Group’s portfolio comes to 250 healthcare operations, 23 of which also include senior living operations in 13 states. ENSG owns 102 real-estate assets. Management reassured that the nursing home company is looking for opportunities to acquire real estate and lease well-performing and struggling skilled nursing, senior living and other healthcare-related businesses throughout the United States. This highlights its intention to sustain the momentum.
Booming Acquisition Story
This is not the first time that ENSG made efforts to expand its presence in Arizona and Texas. In fact, Ensign Group is aggressive about acquiring real estate or leasing strongly performing as well as struggling post-acute care operations and subsequently, evolving those into market leaders.
Last month, ENSG bought the operations of Arrowhead Springs Healthcare, San Bernardino, CA and Desert Mountain Care Center, Indio, CA.
In January 2022, ENSG purchased operations of Estrella Health and Rehabilitation Center, a 161-bed skilled nursing facility in Avondale, AZ.
The acquisition strategy of Ensign Group is focused on identifying opportunistic and strategic transactions that lie within specific markets and deliver robust returns.
This buyout binge helps the leading industry player establish its dominance further in the United States.
Ensign Group bought 278 facilities from January 2011 through December 2021. During the year ended Dec 31, 2021, ENSG expanded its operations and real estate portfolio through long-term leases and real estate purchases by adding 17 standalone skilled nursing operations and five real-estate purchases.
Like ENSG, other medical stocks serious about their M&A strategy include Encompass Health Corporation (EHC - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Tenet Healthcare Corporation (THC - Free Report) .
Encompass Health focuses on expansion plans to add inpatient rehabilitation hospitals to its existing network and build scale in hospice. In June 2021, EHC purchased the home health and hospice assets of Frontier Home Health and Hospice across Alaska, Colorado, Montana, Washington and Wyoming.
HCA Healthcare is committed to undertaking acquisitions, which have so far added and expanded its facilities across several markets as well as increased patient volumes. HCA spends a substantial amount on acquiring hospitals and health care entities, which incurred expenses worth $1.1 billion in 2021. HCA recently purchased MD Now Urgent Care from an LA-based private equity investment firm, Brentwood Associates.
Tenet Healthcare pursued numerous acquisitions, partnerships and strategic alliances to expand the scale of its business, operating capacity and geographical presence. THC constantly partnered with industry biggies like Blue Cross Blue Shield of Texas, Cigna, Aetna, UnitedHealth, Humana and so on. It closed the buyout of an ASC in Washington and a new surgical hospital in ASC in the Central Valley of California.
In November 2021, THC along with its unit United Surgical Partners International (USPI) entered into a definitive agreement to acquire SurgCenter Development (SCD) for $1.2 billion. Its inorganic growth strategies poise it well for long-term growth.
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Ensign Group (ENSG) on Buyout Binge for Portfolio Boost
The Ensign Group, Inc. (ENSG - Free Report) continued with its acquisition spree by purchasing the operations of Amarsi Assisted Living in Glendale and Citadel Assisted Living Facility in Mesa, both in Arizona.
The latest buyouts helped ENSG further penetrate the US state. The deals were effective Mar 1, 2022. Both acquisitions will be subject to a long-term, triple net lease. The operations belong to a healthcare campus consisting of skilled nursing services operated by Ensign Group affiliates.
In a separate deal on the same day, ENSG’s affiliates bought the real estate and operations of The Waterton Healthcare and Rehabilitation in Tyler, TX, effective Mar 1, 2022.
Post these deals, Ensign Group’s portfolio comes to 250 healthcare operations, 23 of which also include senior living operations in 13 states. ENSG owns 102 real-estate assets. Management reassured that the nursing home company is looking for opportunities to acquire real estate and lease well-performing and struggling skilled nursing, senior living and other healthcare-related businesses throughout the United States. This highlights its intention to sustain the momentum.
Booming Acquisition Story
This is not the first time that ENSG made efforts to expand its presence in Arizona and Texas. In fact, Ensign Group is aggressive about acquiring real estate or leasing strongly performing as well as struggling post-acute care operations and subsequently, evolving those into market leaders.
Last month, ENSG bought the operations of Arrowhead Springs Healthcare, San Bernardino, CA and Desert Mountain Care Center, Indio, CA.
In January 2022, ENSG purchased operations of Estrella Health and Rehabilitation Center, a 161-bed skilled nursing facility in Avondale, AZ.
The acquisition strategy of Ensign Group is focused on identifying opportunistic and strategic transactions that lie within specific markets and deliver robust returns.
This buyout binge helps the leading industry player establish its dominance further in the United States.
Ensign Group bought 278 facilities from January 2011 through December 2021. During the year ended Dec 31, 2021, ENSG expanded its operations and real estate portfolio through long-term leases and real estate purchases by adding 17 standalone skilled nursing operations and five real-estate purchases.
Shares of the nursing homes player have gained 2% over the past six months against its industry’s decline of 0.9%. ENSG currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Like ENSG, other medical stocks serious about their M&A strategy include Encompass Health Corporation (EHC - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Tenet Healthcare Corporation (THC - Free Report) .
Encompass Health focuses on expansion plans to add inpatient rehabilitation hospitals to its existing network and build scale in hospice. In June 2021, EHC purchased the home health and hospice assets of Frontier Home Health and Hospice across Alaska, Colorado, Montana, Washington and Wyoming.
HCA Healthcare is committed to undertaking acquisitions, which have so far added and expanded its facilities across several markets as well as increased patient volumes. HCA spends a substantial amount on acquiring hospitals and health care entities, which incurred expenses worth $1.1 billion in 2021. HCA recently purchased MD Now Urgent Care from an LA-based private equity investment firm, Brentwood Associates.
Tenet Healthcare pursued numerous acquisitions, partnerships and strategic alliances to expand the scale of its business, operating capacity and geographical presence. THC constantly partnered with industry biggies like Blue Cross Blue Shield of Texas, Cigna, Aetna, UnitedHealth, Humana and so on. It closed the buyout of an ASC in Washington and a new surgical hospital in ASC in the Central Valley of California.
In November 2021, THC along with its unit United Surgical Partners International (USPI) entered into a definitive agreement to acquire SurgCenter Development (SCD) for $1.2 billion. Its inorganic growth strategies poise it well for long-term growth.