Ensign won the right to build the additional beds in 2006 after successfully navigating Washington's certificate of need process, including several appeals. Proceeds of Ensign's initial public offering were used to complete the construction.
On October 28, 2008 Ensign subsidiaries acquired the assets of four skilled nursing facilities in Texas and California for an aggregate purchase price of approximately $10.4 million. The four facilities include 426 skilled nursing beds. Ensign operating subsidiaries have been operating the three Texas facilities since 1999 and the California facility since 2001. The operating subsidiaries will continue to operate their facilities under new long-term leases with the acquiring entities. The prior lease agreements did not contain purchase options.
Proceeds of Ensign's recent IPO were used to fund the transactions. Management expects the acquisitions to be immediately accretive to earnings.
With the Texas and California acquisitions the Company operates 62 facilities in six Western states, owns 32 of its facilities and operates the other 30 facilities under long-term lease arrangements, with options to purchase eight of those 30 leased facilities.
A live webcast will be held on Friday, October 31, 2008, at 8:30 a.m.
Pacific Time (11:30 a.m. Eastern Time) to discuss Ensign's third quarter
fiscal year 2008 financial results. To listen to the webcast, or to view
any financial or other statistical information required by SEC Regulation
G, please visit t
|SOURCE The Ensign Group, Inc.|
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