Business
Extendicare Announces Agreement to Acquire Closing the Gap Healthcare Group
MARKHAM, Ontario, May 01, 2025 (GLOBE NEWSWIRE) -- Extendicare Inc. (“ Extendicare &#x...
About this update from Extendicare Inc.
[{"type":"text","content":"Extendicare Announces Agreement to Acquire Closing the Gap Healthcare Group\n\n\n\n MARKHAM, Ontario, May 01, 2025 (GLOBE NEWSWIRE) -- Extendicare Inc. (“\n \n Extendicare\n \n ” or the “\n \n Company\n \n ”) (TSX: EXE) announced today that its wholly owned home health care subsidiary, ParaMed Inc. (“\n \n ParaMed\n \n ” or the “\n \n Purchaser\n \n ”), has entered into an agreement to acquire all of the issued and outstanding shares of Closing the Gap Healthcare Group Inc. and certain affiliates (collectively, “\n \n Closing the Gap\n \n ”) from the ultimate shareholders of Closing the Gap (the “\n \n Transaction\n \n ”).\n \n\n Closing of the Transaction is subject to customary closing conditions, including receipt of consents from third parties, including the Minister of Health for Ontario and the Minister of Seniors and Long-Term Care for Nova Scotia, and is not conditional on financing or due diligence. The Transaction is anticipated to close in the third quarter of 2025.\n \n\n ParaMed is acquiring Closing the Gap on a debt-free, cash-free basis. The aggregate cash consideration for the Transaction is approximately $75.5 million, subject to customary and other adjustments. The Transaction also includes an earnout tied to new business revenue generation in the twelve months after closing. The purchase price is expected to be funded from cash on hand and existing senior secured credit facilities.\n \n\n “Closing the Gap has been a recognized leader in home and community healthcare for thirty-five years and we are privileged to welcome them to the Extendicare family,” said Dr. Michael Guerriere, President and CEO of Extendicare. “Closing the Gap’s capabilities in allied services, strong market presence in Nova Scotia and Ontario, and proven track record innovating and delivering integrated care models are highly complementary to our existing home health care operations and provide a strong platform for growth.”\n \n\n\n Transaction Overview\n \n\n Founded in 1990, Closing the Gap is a leading provider of integrated home and community-based healthcare services in Ontario and Nova Scotia, delivering adult and pediatric care services in patients’ homes and in community clinics. In addition to personal sup...