Extendicare acquires a 15% managed interest in 24 long-term care homes from Revera & form a redevelopment joint venture with Axium
Torys acted as counsel to Extendicare with a team that included 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 August 1, 2023, Extendicare Inc. (“Extendicare”) announced the completion of the previously announced agreements, dated March 1, 2022, 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 entered 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 also entered 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’s previously announced 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 received regulatory approval and is anticipated to close before the end of the third quarter, subject to customary closing conditions. Axium will own an 85% interest in the joint venture with Extendicare retaining a 15% interest.
The aggregate cash consideration for the Revera Transactions was approximately C$32.6 million plus the assumption of approximately C$37.1 million in debt (at Extendicare’s share), subject to post-closing adjustments.
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.