Emeritus Corporation, a national provider of senior living services, has agreed to purchase the Weston Group, Inc., and related entities, which provide rehabilitation services and medical equipment products to the senior living industry, for $18 million.
“This is a particularly meaningful opportunity for Emeritus to expand our services into the complementary rehab therapy business,” said Granger Cobb, president and Co-CEO of Emeritus, in a release. “We have the tremendous potential to expand this new line of business throughout all of the Emeritus communities, as well as through external growth.”
The Weston Group’s annual revenues approximate $37.0 million; Emeritus accounts for approximately a third of these revenues, which represents service in approximately 50 communities. “Similar to the experience of other senior living providers, the addition of these rehab therapy services will provide significant top- and bottom-line growth as they are rolled out throughout the country,” Cobb said.
Randy Weston, the principal of the Weston Group, will serve as president of the new entity.
This purchase agreement is contingent upon several customary closing conditions and is expected to be completed in early 2011.