Extendicare to acquire a 15% managed interest in 24 long-term care homes from Revera & form a redevelopment joint venture with Axium

Torys is acting as counsel to Extendicare with a team that includes Simon Knowling, Nooreen Bhanji and Scarlett O’Shea (real estate), Graham Rawlinson (regulatory), Susan Nickerson (pensions and employment), Craig Maurice (tax) and Nina Mansoori (financing).

On March 1, 2022, Extendicare Inc. (“Extendicare”) announced that it entered into agreements with Revera Inc. (“Revera”) to acquire a 15% managed interest in 18 “class A” long-term care homes located in Ontario and six homes in Manitoba (the “Acquisition”). The remaining 85% interest will continue to be owned by an affiliate of Axium Infrastructure Inc. (“Axium”). Upon closing of the acquisition, Extendicare will enter into management contracts with Revera to manage all of Revera’s other long-term care homes in Ontario and Manitoba, which comprise 31 “class C” homes located in Ontario and one personal care home located in Manitoba. Extendicare will also enter into development arrangement agreements with Revera in respect of the potential redevelopment of those managed “class C” homes in Ontario into new homes (collectively with the Acquisition, the “Revera Transactions”).

In addition, Extendicare announced its agreement with Axium in respect of the formation of a joint venture with Axium to jointly redevelop certain of Extendicare’s existing Ontario “class C” homes. Axium will own an 85% interest in the joint venture with Extendicare retaining a 15% interest.

The aggregate cash consideration for the Revera Transactions is approximately C$36.0 million plus the assumption of approximately C$34.0 million in debt (at Extendicare’s share), subject to customary adjustments.

Closing of the Revera Transactions is subject to customary closing conditions, including receipt of regulatory approvals from the Ontario Ministry of Long-Term Care and Manitoba Health and Winnipeg Regional Health Authority, and is not conditional on financing or due diligence.

Further information can be found on Globe Newswire’s website.

Extendicare is a leading provider of care and services for seniors across Canada, operating under the Extendicare, Esprit Lifestyle, ParaMed, Extendicare Assist, and SGP Purchasing Partner Network brands.

Axium Infrastructure is an independent portfolio management firm dedicated to generating long-term investment returns through investing in core infrastructure assets.