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

Extendicare has agreed to sell its U.S. business to an investor group led by Formation Capital and Safanad for $870 million.

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

Headquartered in Markham, Ontario, Extendicare is a North America provider of post-acute and long-term senior care services.

Guggenheim Securities served as financial advisor to Extendicare while BofA 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 for about $150 million.

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