Skilled Nursing Co. Completes Spin-off of Pennant Group

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SAN JUAN CAPISTRANO, CA—The Ensign Group has completed its spin-off of The Pennant Group, the second spin off it has completed in the last five years following CareTrust REIT’s in 2014. The Pennant Group will focus on home health, hospice and senior living businesses, while Ensign will continue to invest in the skilled nursing asset class.

Ensign will continue to pursue the purchase of additional real estate assets. It now owns 82 real estate assets, including 29 senior living assets that will be leased by Pennant following the spin-off, Ensign CEO Barry Port says in prepared remarks. There is also opportunity and upside in the company’s existing portfolio, he adds. Port also notes that Pennant is a product of Ensign’s new business venture program, which continues to incubate businesses that use Ensign’s best practices in healthcare-related settings.

In the spin-off, Ensign stockholders received one share of Pennant common stock for every two shares of Ensign common stock held at the close of business on September 20, 2019. No fractional shares have been distributed in connection with the spin-off, and a cash payment will be made in lieu of any fractional shares.

Bank of America Merrill Lynch served as lead financial advisor to Ensign in connection with the spin-off. Kirkland & Ellis LLP served as legal advisor to Ensign.