The Pennant Group (Nasdaq: PTNG) has closed its acquisition of former Amedisys and UnitedHealth Group (NYSE: UNH) hospice and home health locations in Tennessee, Alabama and Georgia.
The deal includes 54 locations for a purchase price of $146.5 million. Most of these care centers are located in Tennessee, a certificate of need state. Approximately two-thirds of the revenue is connected to home health and one-third to hospice, according to Pennant.
“This marks an exciting new chapter in Pennant’s growth journey,” said Pennant Group CEO Brent Guerisoli. “Entering the Southeast is a strategic move for us, and we do so from a position of strength, building on proven leadership, operational excellence and a clear vision for the future. This acquisition opens the door for emerging leaders in this new region to grow within Pennant’s innovative platform.”
The sale had been contingent on the closure of the UnitedHealth Group’s own acquisition of Amedisys, which has been delayed by an investigation and lawsuit by the U.S. Department of Justice (DOJ). On Wednesday, the DOJ filed a Proposed Final Judgment in federal court that stands to resolve the case, clearing the way for the divestiture to Pennant Group, with other locations going to BrightSpring Health Services (Nasdaq: BTSG).
Pennant is the holding company for a broad cluster of independent hospice, home health and senior living providers located across 13 states, a footprint that is set to expand through the Amedisys-UnitedHealth Group deal.
The company’s total Q2 revenue reached $219 million, up 30.1% year over year. Its home health and hospice segment contributed $166 million, up 32.5% from Q2 2024.
Guerisoli indicated in a statement that Pennant will continue to pursue opportunities for growth in the home health, hospice and senior living industries, targeting strategic and underperforming operations of all sizes.
The company’s new footfold in Tennessee will likely serve as a hub for future expansion into the Southeast, according to Pennant COO John Gochnour.
“We believe the Tennessee market is unique, that there’s an immense amount of talent in our industries in that particular state and in the region, and we’re excited about the Alabama and Georgia assets as well and having a foothold in those regions,” Gochnour said in a recent earnings conference call. “But we’re really excited about the scale that we will have in Tennessee and the opportunities it will give us to impact that care continuum, interact with payers and become a resource to the communities in that state … We’re excited about how it positions us with a center of strength from which we can grow in the Southeast.”
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