The Ensign Group Inc.'s board has approved the spinoff of its home health, hospice and senior living businesses into a separate company.
The spinoff will create two publicly traded companies: the Ensign Group and the Pennant Group Inc.
The San Juan Capistrano, Calif-based company said Ensign Group will include transitional and skilled services, rehabilitative care services, healthcare campuses, post-acute-related new business ventures and real estate investments.
The Pennant Group will consist of the home health and hospice operations and substantially all of Ensign's senior living operations.
The transaction will be executed through a pro rata, tax-free distribution of Pennant's common stock to Ensign's shareholders.
In the distribution, Ensign stockholders will receive one share of Pennant common stock for every two shares of Ensign common stock. The distribution will be made to Ensign stockholders of record as of Sept. 20 and will be effective Oct. 1.
The Pennant Group's shares will be listed on the Nasdaq under the PNTG symbol, pending acceptance of its application by the stock exchange, while Ensign will continue to be listed on Nasdaq under the symbol ENSG.
Daniel Walker, the president of Ensign's home health and hospice holding company Cornerstone Healthcare, will become the chairman, CEO and president of Pennant after the spinoff. Ensign's Executive Chairman Christopher Christensen will also become a director of Pennant.
