Extendicare announces agreement to acquire Closing the Gap Healthcare Group

On May 1, 2025, Extendicare Inc. (“Extendicare”) announced that its wholly owned home health care subsidiary, ParaMed Inc. (“ParaMed”), entered into an agreement to acquire all of the issued and outstanding shares of Closing the Gap Healthcare Group Inc. and certain affiliates (collectively, “Closing the Gap”) from the ultimate shareholders of Closing the Gap.

The aggregate cash consideration for the transaction is approximately C$75.5 million, subject to customary and other adjustments, which is expected to be funded from cash on hand and existing senior secured credit facilities.

The transaction also includes an earnout tied to new business revenue generation in the twelve months following closing. Extendicare anticipates that the additional purchase price from the earnout would be in the range of C$3.5 to C$5.5 million, payable on the first anniversary of closing, adding an estimated incremental C$7 to C$11 million in revenue.

The transaction is anticipated to close in the third quarter of 2025, 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.

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

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 support and nursing services, it has deep expertise in allied health services, including physiotherapy, occupational therapy, speech language pathology, nutrition and social work.

Extendicare is a leading provider of care and services for seniors across Canada, operating under the Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Network brands. It operates a network of 122 long-term care homes (51 owned, 71 under management contracts), delivers approximately 11 million hours of home health care services annually, and provides group purchasing services to third parties representing approximately 146,300 beds across Canada.