Extendicare closes $570M CHI Home Health acquisition

Executive Summary

• Extendicare Inc. completed the acquisition of CBI Home Health LP and related entities through its subsidiary ParaMed Inc.
• The transaction involves a cash purchase price of $570.0 million, plus approximately $13.6 million in estimated lease liabilities.
• The acquisition was financed via $191.5 million from a previously announced private placement, $308.2 million drawn from existing senior secured credit facilities, and cash on hand.

Key Details

• Transaction Structure: Extendicare Inc.'s wholly owned subsidiary, ParaMed Inc., acquired the equity interests of CBI Home Health LP, CBI (GP) 3 Inc., and their respective subsidiaries from CBI Health LP and CBI GP Holdco Inc.
• Purchase Price: Cash purchase price of $570.0 million, subject to customary adjustments.
• Lease Liabilities: Approximately $13.6 million in estimated lease liabilities assumed in accordance with IFRS 16.
• Financing Details:
  • Net proceeds of approximately $191.5 million from Extendicare's private placement of common shares (completed Dec. 3, 2025).
  • Aggregate draws of approximately $308.2 million under Extendicare's existing senior secured credit facility, consisting of a $154.5 million delayed draw term facility and a $153.7 million revolving credit facility.
  • Remaining balance funded by cash on hand.
• Strategic Rationale: The acquisition aims to combine ParaMed and CBI Home Health to support more Canadians living independently at home, leveraging technology for cost synergies and superior operating performance.
• Advisers:
  • For Extendicare: CIBC Capital Markets (financial adviser), Torys LLP (legal adviser).
  • For CBI Home Health: TD Securities and Houlihan Lokey (financial advisers), Stikeman Elliott LLP (legal adviser).

Notable Quotes

• "We are excited to welcome the CBI Home Health team to the Extendicare family... CBI's geographic footprint and its experience providing innovative care models is highly complementary to our existing home health platform... The combination of ParaMed and CBI Home Health will enable us to support more Canadians to live independently at home." — Dr. Michael Guerriere, President and CEO, Extendicare Inc.