Extendicare has sale date set for U.S. properties
by Peter Jakey-Managing Editor
Extendicare Inc., the parent company of Tendercare Health Center (THC) of Rogers City as well as numerous other senior care living facilities throughout Michigan, has a tentative final closing date of June 1 on the sale of its U.S. operations.
The company announced last November that it had entered into a purchase agreement to sell nearly all of its U.S. operations to a group of investors led by Formation Capital, LLC, a health care-focused private investment firm and an affiliate of Safanad Inc.
In November, the Toronto-based company said it intends to use proceeds from the sale to expand its Canadian operations.
Extendicare expects to receive about $222 million U.S. of cash — abou
The company, headquartered in Markham, Ontario, will retain 10 skilled nursing centers in the United States but intends to sell them.
A company official said the new operator has no plans of closing the Rogers City facility and all 109 current employees are expected to retain their positions under the management company.
As of Sept. 30, 2014 Extendicare’s U.S. business included 141 senior care centers owned and operated by the company, four centers operated under lease arrangements and 21 centers in Kentucky leased to a third-party operator.
Extendicare acquired Tendercare of Michigan in November 2007. The Rogers City facility provides long-term skilled nursing care and short-term rehabilitation with 106 beds.