Nursing home chain Beverly Enterprises' subsidiary AEGIS Therapies announced it would acquire the rehabilitation business conducted by two subsidiaries of post-acute competitor Sun Healthcare Group, Irvine, Calif., for $34 million. The sale of SunDance Rehabilitation Corp. and SunDance Rehabilitation Agency is contingent upon customary legal and business conditions as well as approval by Beverly's board of directors. The companies anticipate closing the transaction at the end of January 2004. William Floyd, chairman, president and CEO of Fort Smith, Ark.-based Beverly, said in a news release that the acquisition of Sun's rehabilitation business is part of Beverly's strategic plan to significantly grow the service side of its business where capital expenditure requirements are lower and margins are higher. As of Sept. 30, Sun operated 124 long-term and other inpatient-care facilities compared with 239 as of Sept. 30, 2002. Beverly operates 378 skilled-nursing facilities, as well as 21 assisted-living centers, and 23 hospice and home-care centers. -- by Julie Piotrowski
AEGIS Therapies to acquire rehabilitation centers
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