Pacs Group, an operator of skilled care nursing facilities, filed plans for an initial public offering and seeks to raise almost $400 million.
The company, which has more than 200 skilled nursing facilities and other post-acute operations across nine states, seeks to offer just over 19 million shares at a price between $20 to $22 per share, according to a filing this week with the Securities and Exchange Commission.
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Pacs Group said it intends to use $330 million of the net proceeds to repay obligations under its credit facility and the remaining proceeds for general corporate purposes and to expand its presence in existing and new markets.
"We have a robust pipeline of potential single-facility tuck-in acquisitions, larger multi-facility portfolio acquisitions and select new facility builds across existing and new markets," the company said in the filing. "We have historically completed an average of approximately 20 acquisitions and one de-novo, or new-build, facility per year, but have the flexibility to increase or decrease this cadence from period to period in line with our business priorities and as strategic opportunities arise."
Last year, Pacs Group said its net income totaled $112.9 million on revenue of $3.1 billion, compared with income of $150.5 million on $2.4 billion in 2022.
