Ensign Group Strengthens Footprint: Acquires Two Skilled Nursing Facilities In South Carolina
Portfolio Pulse from Nabaparna Bhattacharya
The Ensign Group, Inc. (NASDAQ:ENSG) has acquired the operations of two South Carolina-based skilled nursing facilities, Ashley River Healthcare and The Reserve Healthcare and Rehabilitation. The financial terms of the deal were not disclosed. This acquisition is in line with Ensign's strategy of leasing and acquiring real estate. The company's Q2 report showed a 25.9% Y/Y increase in total skilled services revenue to $884.2 million. The latest acquisitions bring Ensign's portfolio to 295 healthcare operations across 13 states.
September 05, 2023 | 2:26 pm
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Ensign Group's acquisition of two skilled nursing facilities is expected to strengthen its footprint in the healthcare sector. However, the company's shares traded lower by 3.5% to $95.62 on the last check Tuesday.
The acquisition of the two skilled nursing facilities aligns with Ensign Group's strategy of expanding its real estate portfolio. This could potentially boost the company's revenue in the long term. However, the immediate market reaction was negative, with the company's shares trading lower by 3.5%. This suggests that investors may have concerns about the financial implications of the acquisitions.
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