New York, NY – November 7, 2014

Safanad and Formation Capital enter into Definitive Agreement to Buy the US Business of Extendicare for US$ 870 million
Safanad, the global principal investment firm, and Formation Capital LLC, a healthcare focused private investment firm, together with a group of investors, announced they have entered into a definitive share purchase agreement to buy substantially all of Extendicare Inc.’s U.S. business for US$870 million.

“We are pleased to announce we have reached an agreement to buy Extendicare’s U.S. business,” said Kamal Bahamdan, CEO and Founder of Safanad.  “This senior care transaction is aligned with our strategy to continue to both identify and execute on specialized investment opportunities within the Health Care sector.”

As at September 30, 2014, Extendicare’s U.S. senior care portfolio was composed of 141 owned and operated senior care centers; four centers operated under lease arrangements; ten centers operated under managed contracts; and 21 centers in Kentucky leased to a third-party operator.

The transaction will be completed by the transfer of all of the issued and outstanding shares of Extendicare Holdings, Inc., a subsidiary of the Extendicare Inc. that indirectly holds all of the shares of the Extendicare subsidiaries that own and operate the U.S. business. Completion of the Transaction is subject to receiving certain U.S. state licensure approvals, lender and other third party consents and other customary conditions, and is expected to close in the first quarter of 2015.

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About Safanad

Safanad is a global principal investment firm that invests in real estate, private equity and public markets.  As principal investors, Safanad preserves and grows wealth through carefully selected investments with aligned industry partners. With offices in New York, Dubai, London and Geneva, the firm seeks to identify global investment opportunities poised to deliver consistently attractive returns, where the firm’s capital and investment expertise support value creation.  Safanad’s investment focus is primarily within the healthcare, education, financial services and retail sectors. The firm’s investment expertise is enhanced by its relationship with the Bahamdan Group, Safanad’s founding shareholder, which has over 60 years of experience in global principal investing and building strategic partnerships.  For more information, visit www.safanad.com

 

About Extendicare

Extendicare is a leading North American provider of post-acute and long-term senior care services. Through its network of owned and operated health care centers, its qualified and experienced workforce of 35,900 individuals is dedicated to helping people live better through a commitment to quality service that includes skilled nursing care, rehabilitative therapies and home health care services. Extendicare’ 259 senior care centers in North America have capacity to care for approximately 28,400 residents.