Extendicare Expands Healthcare Reach with Closing the Gap Acquisition
Deal News | Jul 02, 2025 | Globenewswire
Extendicare Inc., through its subsidiary ParaMed Inc., completed the acquisition of Closing the Gap Healthcare Group. The deal, effective July 1, 2025, entailed a purchase price of $75.5 million, with an earnout tied to new business revenue expected to range from $3.5 to $5.5 million. This acquisition was funded using cash on hand and existing credit facilities. Extendicare also increased its senior secured credit facility by $100 million, aiming to facilitate future growth and acquisitions. The advisory roles for the transaction were fulfilled by Torys LLP for Extendicare and Origin Merchant Partners and Aird & Berlis LLP for Closing the Gap. Extendicare operates extensively in Canada, providing various healthcare services with a strong focus on the senior demographic. The company remains committed to strategic growth initiatives and meeting the increasing needs of senior care efficiently.
Sectors
- Healthcare Services
- Financial Services
Geography
- Canada – Extendicare operates and completed its acquisition in Canada, indicating the geographical relevance.
Industry
- Healthcare Services – The acquisition involves companies providing healthcare services, especially focusing on home healthcare and senior care.
- Financial Services – The transaction involves financial elements such as acquisitions, credit facilities, and advisory services, relevant to the financial services industry.
Financials
- 75.5 million USD – The initial cash consideration for the acquisition of Closing the Gap Healthcare Group by ParaMed.
- 3.5 to 5.5 million USD – Anticipated earnout tied to new business revenue generation post-acquisition.
- 100 million USD – Increase in Extendicare's existing Senior Secured Credit Facility to a total of $375 million.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Extendicare Inc. | Acquiring Company | Company | A leading provider of care and services for seniors across Canada, operating under several brands. |
| ParaMed Inc. | Purchaser | Company | A wholly owned subsidiary of Extendicare Inc., involved in the acquisition. |
| Closing the Gap Healthcare Group Inc. | Target Company | Company | The company acquired by ParaMed, known for its rehabilitation services and integrated care models. |
| Torys LLP | Legal Advisor to Extendicare | Company | Law firm that provided legal advice to Extendicare for the transaction. |
| Origin Merchant Partners | Financial Advisor to Closing the Gap | Company | Financial advisory firm that advised Closing the Gap for the transaction. |
| Aird & Berlis LLP | Legal Advisor to Closing the Gap | Company | Law firm that provided legal advice for Closing the Gap during the transaction. |
| Dr. Michael Guerriere | President and CEO | People | President and CEO of Extendicare Inc., overseeing the acquisition and expansion strategies. |