Extendicare Inc. Enhances Home Healthcare with $75.5M Acquisition of Closing the Gap
- Extendicare Inc. acquires Closing the Gap Healthcare Group for $75.5 million to enhance home healthcare services.
- The acquisition aims to address rising demand for senior care and integrate rehabilitation services.
- Extendicare increases its credit facility by $100 million to support future growth and acquisitions in senior care.
Extendicare Expands Home Healthcare Services with Strategic Acquisition
Extendicare Inc. announces a major strategic development with its acquisition of Closing the Gap Healthcare Group Inc. through its subsidiary, ParaMed Inc., effective July 1, 2025. Valued at $75.5 million, this deal is executed on a debt-free and cash-free basis, integrating Closing the Gap’s rehabilitation services into Extendicare's offerings. Dr. Michael Guerriere, Extendicare's President and CEO, expresses optimism about the acquisition, emphasizing how it aligns with the company's mission to enhance home healthcare services amid increasing demand for senior care.
The acquisition comes at a crucial time when the need for comprehensive home healthcare solutions is on the rise. By integrating Closing the Gap's expertise in rehabilitation services, Extendicare positions itself to better serve Canada’s aging population, responding to both immediate and long-term healthcare needs. The addition of these services is expected to bolster Extendicare's existing home healthcare portfolio, enabling the company to provide more holistic care options for seniors. Furthermore, the transaction includes earnout provisions estimated to generate between $3.5 million and $5.5 million in revenue based on new business generated within the first year, indicating a robust growth potential.
In conjunction with the acquisition, Extendicare increases its senior secured credit facility by $100 million, raising the total to $375 million. This expanded facility comprises a $55 million delayed draw term loan and a $45 million revolving credit component, designed to facilitate future strategic acquisitions and overall growth initiatives. The company plans to utilize the additional funding from the delayed draw facility in the upcoming third quarter, enhancing its financial flexibility to navigate ongoing operational needs and capitalize on new opportunities in the senior care sector.
In addition to the acquisition, Extendicare continues its commitment to the senior care industry by operating 99 long-term care homes and providing approximately 11.2 million hours of home healthcare annually. With a dedicated workforce of around 27,500 employees, the company aims to further enhance its service capabilities to meet the evolving needs of Canada’s senior population.
Extendicare's strategic acquisition and subsequent financial maneuvers highlight its proactive approach in an increasingly competitive market, ensuring it remains at the forefront of delivering quality care to seniors across Canada. The company’s focus on integrating new services while strengthening its financial foundation indicates a promising path for sustained growth and innovation in the senior healthcare landscape.