PACS Group stock rises on Florida expansion, Eduro closings

PACS Group shares climbed 3.3% in early trading on Wednesday after the company announced agreements to acquire 32 skilled nursing facilities in Florida and finalize the closure of Eduro Healthcare transactions. The Florida facilities, leased from Omega Healthcare Investors, will consist of 4,049 licensed skilled nursing beds. The deal is set to close in the fourth quarter, pending customary conditions.

This acquisition marks PACS's entry into Florida and broadens its southern presence, beyond current operations in Texas, South Carolina, Tennessee, and Kentucky. The company stated the facilities are integrated into local healthcare networks across the state.

In addition, PACS announced it closed on 11 more facilities from Eduro Healthcare, bringing the total Eduro closings to 31 out of 34 facilities. These acquisitions encompass 20 facilities closed in August and the 11 facilities announced on Wednesday, representing 3,633 nursing beds across New Mexico, North Dakota, and South Dakota.

Three facilities remain pending closure. With these transactions, PACS's network expands to 355 facilities. The Eduro closings expanded the company into three new states, while the Florida deal establishes operations in a fourth new market. CEO Jason Murray expressed excitement about the company's expansion into a dynamic, new market in Florida, which aligns with the company's long-term strategy of targeting areas with strong demographic demand and opportunities to improve care delivery.