The Pennant Group Inc. (NASDAQ: PNTG) has agreed to acquire Signature Healthcare at Home’s hospice and home health assets for a price tag of $80 million. 

Pennant is the holding company for a group of independent hospice, home health and senior living providers located across 13 states. The company announced the transaction in a statement on Thursday.

The decision to purchase Signature’s assets was a key part of Pennant’s strategic growth plans, according to CEO Brent Guerisoli. The hospice and home health care provider’s quality outcomes and organizational culture played a large role in picking up the company, Guerisoli stated.

“This is a significant acquisition in Pennant’s history,” Guerisoli said in a statement. “We are excited to make this investment because of the quality of Signature’s people and operations. Its locations, its philosophy and its culture are a perfect complement to our existing operations in the Pacific Northwest. A key tenet of Pennant’s disciplined growth strategy is that we make acquisitions from a foundation of strength, where we have solid existing leaders and well-performing operations. This deal is a great example of that.”

The transaction involves two separate purchase agreements, with one projected to complete by August 1 and the other by January 1, pending customary closing conditions and regulatory approval processes.

Acquiring Signature will boost Pennant’s existing presence across three states. The purchase adds seven locations to the company’s footprint in Oregon, as well as multiple locations in four Washington cities and two cities in southwest Idaho.

“As we transition these operations into the Pennant fold, we are pleased to deepen our presence in these key states and to provide Signature’s leaders and staff the opportunity to benefit from our innovative operating model and leadership development programs, while also implementing clinical and operational best practices that will benefit patients and their communities,” said John Gochnour, president and COO at Pennant.

Pennant will continue pursuing growth opportunities in hospice, home health and senior living, targeting strategic and underperforming operations of all sizes, Gochnour added. The company’s current holds 115 hospice and home health agencies and 54 senior living providers as independent subsidiaries.

Signature Healthcare at Home has an average daily census (ADC) of more than 300 hospice patients, with its home health admissions reaching upwards of 12,000 patients during the last year. The hospice and home health provider’s annual revenue hover around $78 million. Signature also offers palliative and primary care services.

The deal is expected to contribute an incremental 13% boost to Pennant’s revenue, coupled with a 25% increase in home health admissions and a 3% jump in hospice ADC, according to Scott Fidel, analyst for Stephens, in a research note.

The deal will help widen career growth opportunities for current and future employees, according to Signature President Mary Kofstad.

Signature and The Pennant Group align in terms of shared missions, values and strategic growth goals, Kofstad said. The companies’ similar strategies around retention and career development strategies were also a factor in the transaction’s consideration, she stated.

“After 25 years of serving communities across the Pacific Northwest, we are excited to be acquired by Pennant,” Kofstad said in the announcement. “This transition represents significant professional and personal growth opportunities for our Signature colleagues, whose inspiring dedication and work ethic have made us who we are, and who will continue to write new chapters in the Signature story with the additional support and resources provided by The Pennant Group.”