PACS Group, Inc. reported a notable uptick in premarket trading Wednesday after disclosing definitive agreements to acquire the operations of 32 skilled nursing facilities in Florida and announcing the completion of additional closings tied to its Eduro Healthcare transaction. Shares rose 3.3% in early trading following the company's announcements.
The Florida portfolio will be leased from Omega Healthcare Investors, Inc. and comprises 4,049 licensed skilled nursing beds. PACS said the deal is expected to close in the fourth quarter, subject to customary closing conditions.
This transaction represents PACS’s first operational entry into Florida and extends its southern presence beyond existing operations in Texas, South Carolina, Tennessee and Kentucky. The company noted that the newly acquired facilities are integrated into local healthcare networks across the state.
Separately, PACS confirmed it has closed on 11 additional facilities from Eduro Healthcare, bringing the number of completed Eduro closings to 31 of the 34 facilities included in that transaction. The recent set of closings supplements 20 facilities that PACS had already closed in August, and together the completed Eduro acquisitions represent 3,633 nursing beds located across New Mexico, North Dakota and South Dakota. Three facilities from the Eduro portfolio remain pending closing.
When combined, the Florida agreement and the Eduro closings increase PACS’s network to 355 facilities. The Eduro activity introduced PACS into three new states, and the Florida deal will establish operations in a fourth new state for the company.
Management commentary
"Entering a new state and expanding into a dynamic new market is an exciting opportunity for PACS. Florida represents an attractive, high-growth market that aligns with our long-term strategy of expanding into areas with strong demographic demand and opportunities to enhance care delivery," said Jason Murray, PACS Chairman and CEO.
PACS continues to operate its skilled nursing facilities under a locally led, centrally supported model, the company said, a structure it has applied across its network as it adds properties through acquisitions and lease arrangements.
Market and operational context
The Florida portfolio is structured as a lease from Omega Healthcare Investors, indicating PACS will operate the facilities while OHI retains ownership of the real estate. The completed Eduro closings add significant bed count across three states in the Mountain and Upper Midwest regions, and the remaining Eduro facilities are still in process pending closing.
Investors reacted positively to the transaction announcements in premarket trading, reflecting market interest in PACS’s accelerated footprint growth and geographic diversification.
What remains pending
- The Florida transaction remains subject to customary conditions ahead of an expected fourth-quarter closing.
- Three Eduro facilities are still pending closing and have not yet been transferred to PACS’s operations.