Extendicare (EXE) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition creates the largest home health care platform in Canada, expanding national reach and market presence, especially in Alberta.

• Advances a services-focused growth strategy, adding scale to technology platforms and enabling innovative care models and hospital partnerships.

• Capitalizes on demographic trends and government investment in home health care, addressing rising demand and system strain.

• Broadens service offerings and supports more Canadians to live independently at home.

Financial terms and conditions

• Purchase price is CAD 570 million, representing 9.4x Adjusted EBITDA, or 8.4x post-synergies.

• Funded by upsized credit facilities, a $200 million private placement equity offering, and cash on hand.

• Pro forma combined revenue will be CAD 2.2 billion and Adjusted EBITDA approximately CAD 228 million.

• Pro forma total debt to Adjusted EBITDA is 3.3x post-acquisition.

• Includes $13.6 million in estimated lease liabilities under IFRS 16.

Synergies and expected cost savings

• Approximately CAD 7.4 million in IT and back-office cost synergies expected within two years post-closing.

• Additional $5–7 million in longer-term efficiencies anticipated through technology and productivity gains.

• Post-synergy, AFFO per share expected to increase by 20% and earnings per share by 15%.

• Further efficiencies anticipated through scale and technology, not included in initial synergy estimates.