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EAGLE, Idaho - Pennant Group, Inc. (NASDAQ:PNTG) announced Wednesday it has acquired home health, hospice, and personal care operations from UnitedHealth Group Incorporated for $146.5 million. The acquisition, completed on October 1, includes 54 locations primarily in Tennessee, along with facilities in Georgia and Alabama. The deal represents a significant expansion for Pennant, which currently has a market capitalization of approximately $878 million and has demonstrated strong revenue growth of 31% over the last twelve months.
The transaction stems from UnitedHealth and Amedisys Inc.’s antitrust settlement with the U.S. Justice Department. Approximately two-thirds of the revenue from the acquired agencies comes from home health services, with the remaining third from hospice care. According to InvestingPro data, three analysts have recently revised their earnings expectations upward for the upcoming period, suggesting positive sentiment about the acquisition’s impact.
"Entering the Southeast is a strategic move for us," said Brent Guerisoli, Pennant’s Chief Executive Officer, in a press release statement. The companies have established a transition services agreement to facilitate the handover process.
The acquisition package is concentrated in Tennessee, which is a certificate of need state, requiring healthcare providers to obtain state approval before establishing or expanding certain facilities.
John Gochnour, Pennant’s Chief Operating Officer, noted that the acquired teams "are among the leading operators in our industries."
Pennant received legal counsel from Robinson & Cole LLP and Paul Hastings LLP for the transaction, with Truist Securities serving as financial advisor.
The Pennant Group operates independent subsidiaries providing healthcare services through home health and hospice agencies and senior living communities across 14 states.
In other recent news, The Pennant Group reported its second-quarter earnings for 2025, revealing a robust performance. The company’s revenue reached $219.5 million, exceeding analysts’ forecast of $210.59 million. Earnings per share were reported at $0.27, aligning with expectations. RBC Capital responded to these results by raising its price target for The Pennant Group from $33 to $34, while maintaining an Outperform rating. These developments highlight a positive outlook from analysts regarding the company’s financial health. The revenue figures and RBC Capital’s price target adjustment reflect the company’s strong performance and potential for future growth. These recent developments are noteworthy for investors keeping an eye on The Pennant Group.
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