UPDATE — Pennant Completes Purchase of Tennessee, Georgia and Alabama Operations from UnitedHealth Group and Amedisys

Rhea-AI Summary

Pennant (NASDAQ: PNTG) announced on October 1, 2025 the acquisition of certain home health, hospice and personal care operations divested by UnitedHealth following its Amedisys transaction. Pennant paid a combined purchase price of $146.5 million for an asset package of 54 locations with $189.3 million in trailing twelve‑month revenues. The agencies are located in Tennessee, Georgia and Alabama, with ~two‑thirds of revenue from home health and ~one‑third from hospice. Pennant and UnitedHealth executed a transition services agreement to support the handover; Pennant used legal and financial advisors including Truist Securities.

Positive

• Purchase price of $146.5M for 54 locations
• Revenue added: $189.3M trailing twelve months
• Geographic expansion into Tennessee, Georgia and Alabama (Southeast)
• Transition services agreement in place to support integration

Negative

• Geographic concentration: majority of locations and regulatory exposure in Tennessee (certificate of need state)
• Integration complexity: transaction requires transition services, indicating operational handover duties

Insights

M&A Growth Strategist

Pennant acquired 54 divested home-care agencies for $146.5 million, adding $189.3 million of trailing revenue and entry into the Southeast.

This transaction transfers 54 locations in Tennessee, Georgia and Alabama to Pennant and includes a transition services agreement with UnitedHealth. The press release states the acquired mix is roughly two-thirds home health and one-third hospice and identifies Tennessee as a certificate-of-need state, which affects local licensing and operations.

Why it matters: the purchase price ($146.5 million) is lower than the reported trailing twelve‑month revenues ($189.3 million), indicating Pennant buys meaningful scale in a new region and inherits established revenue streams and local teams. The presence of a transition services agreement and named legal and financial advisors reduces execution risk described in the release.

• What to watch: successful completion of the transition services milestones and integration of clinical and operational teams in Tennessee, Georgia and Alabama.

EAGLE, Idaho, Oct. 02, 2025 (GLOBE NEWSWIRE) -- The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice, home care and senior living companies, announced today that on October 1, 2025, it acquired certain operations from UnitedHealth Group Incorporated (“UnitedHealth”). The operations were divested pursuant to UnitedHealth’s acquisition of Amedisys Inc. by UnitedHealth’s Optum unit. 

Pennant is purchasing divested home health, hospice and personal care services in Tennessee, Georgia and Alabama for a combined purchase price of $146.5 million. The asset package includes 54 locations with combined revenues of $189.3 million over the trailing twelve months.

The acquired agencies are primarily located in Tennessee, a certificate of need state. Approximately two-thirds of the revenue is connected to home health and one-third to hospice. Pennant and UnitedHealth have a transition services agreement in place to facilitate a smooth transition, and Pennant has prepared throughout 2025 to execute on the transaction.

“This marks an exciting new chapter in Pennant’s growth journey,” said Brent Guerisoli, Pennant's Chief Executive Officer. “Entering the Southeast is a strategic move for us, and we do so from a position of strength, building on proven leadership, operational excellence, and a clear vision for the future. This acquisition opens the door for emerging leaders in this new region to grow within Pennant’s innovative platform.”

“We are pleased to welcome these exceptional teams into the Pennant family,” said John Gochnour, Pennant’s Chief Operating Officer. “They are among the leading operators in our industries, and their commitment to clinical excellence and deep local ties to the region make this an exciting combination. We look forward to bringing these agencies into our portfolio and bringing the Pennant operating model to the Southeast United States.”

Mr. Guerisoli reiterated that Pennant will continue to pursue opportunities for growth in the home health, hospice and senior living industries, targeting strategic and underperforming operations of all sizes.

Pennant was advised on legal matters by Robinson & Cole LLP and Paul Hastings LLP, with Truist Securities serving as financial advisor on the transaction.

About Pennant^:

The Pennant Group, Inc. is a holding company of independent operating subsidiaries that provide healthcare services through home health and hospice agencies and senior living communities located throughout Arizona, California, Colorado, Connecticut, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming. Each of these businesses is operated by a separate, independent operating subsidiary that has its own management, employees and assets. References herein to the consolidated "company" and "its" assets and activities, as well as the use of the terms "we," "us," "its" and similar verbiage, are not meant to imply that The Pennant Group, Inc. has direct operating assets, employees or revenue, or that any of the home health and hospice businesses, senior living communities or the Service Center are operated by the same entity. More information about Pennant is available at www.pennantgroup.com.

SOURCE: The Pennant Group, Inc.

Contact Information

The Pennant Group, Inc.
(208) 401-1400
ir@pennantgroup.com

FAQ

What did Pennant (PNTG) acquire on October 1, 2025?

Pennant acquired certain home health, hospice and personal care operations from UnitedHealth covering 54 locations in Tennessee, Georgia and Alabama.

How much did Pennant pay for the UnitedHealth/Amedisys divestitures (PNTG)?

Pennant paid a combined purchase price of $146.5 million for the acquired operations.

What revenue did the acquired operations contribute to Pennant (PNTG)?

The asset package had $189.3 million in combined trailing twelve‑month revenues.

What is the revenue mix of the assets Pennant bought (PNTG)?

Approximately two‑thirds of the revenue is from home health and one‑third from hospice.

Will Pennant (PNTG) receive support during the transition from UnitedHealth?

Yes. Pennant and UnitedHealth implemented a transition services agreement to facilitate a smooth handover.

Are there regulatory considerations for the Pennant acquisition (PNTG)?

The acquired agencies are primarily located in Tennessee, which is a certificate of need state and may affect regulatory oversight.