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Formation Capital, Safanad to buy Extendicare’s U.S. business for $870 mln

Extendicare has agreed to sell substantially all of its U.S. business operations to an investor group led by U.S. private equity firm Formation Capital and Safanad for US$870 million.

The transaction is expected to be completed in the second quarter of 2015.

Headquartered in Markham, Ontario, Extendicare is a North American provider of post-acute and long-term senior care services. It was founded in 1968.

Guggenheim Securities served as financial advisor to Extendicare, while Bank of America Merrill Lynch and Desjardins Capital Markets provided financial advice to Formation Capital.

Last July, Formation Capital and Safanad acquired 14 nursing facilities in the mid-Atlantic region of the United States for about US$150 million.

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