Does Revera Own Extendicare?

No, Revera does not own Extendicare. In March 2022, Extendicare, a publicly traded long-term care provider, announced an agreement to buy Revera’s shares in 18 long-term care homes and manage the remaining 31 Revera-owned homes.

The deal is part of a series of acquisitions which are transforming the eldercare industry in Ontario. Extendicare also announced to partner with Axium Infrastructure Inc., a Montreal-based investment management company that owns 85 percent of the remaining interest, to redevelop the Revera homes. The agreement is pending approval by the Ministry of Long-Term Care.

Following the deal, Extendicare will significantly increase its footprint in the province, owning or managing around one in every five Ontario long-term care homes.

Who owns Extendicare?

Extendicare is a publicly traded long-term care provider. In a recent deal, announced in March 2022, Extendicare has agreed to buy shares in 18 long-term care homes from competitor Revera and manage the remaining 31 homes owned by Revera. The deal involves a partnership with Axium Infrastructure Inc., a Montreal-based investment management company that owns 85 percent of the remaining interest.

While Extendicare’s shareholders technically own the company as it is publicly traded, the acquisition of Revera’s shares and the partnership with Axium Infrastructure Inc. consolidates a significant portion of Ontario’s long-term care industry under Extendicare’s management.

What is Extendicare?

Extendicare is a publicly traded long-term care provider based in Ontario, Canada. Operating in an industry where 57% of care homes are for-profit ventures, Extendicare currently owns or manages a significant portion of long-term care facilities in the province. The company is involved in a series of acquisitions and market maneuvers, and is set to further expand its influence upon approval from the Ministry of Long-Term Care.

Extendicare came into prominence due to its partnership with Revera and Axium Infrastructure Inc. In March 2022, the company announced its intentions to buy Revera’s shares in 18 long-term care homes and manage the remaining 31 owned by Revera. Extendicare plans to collaborate with Axium, an investment management company based in Montreal, to revamp the Revera homes.

Despite its prominent standing within the elder care industry, Extendicare saw high COVID-19 death rates in its homes during the pandemic. Residents’ families reported understaffing, high turnover rates, and inadequate care in homes managed by Extendicare Assist, the company’s outsourcing operation. Moreover, Extendicare has further monetized the eldercare sector through high-profile transactions, such as selling off its retirement living portfolio to Sienna Senior Living and SABRA healthcare.

Despite significant public concerns stemming from the pandemic, Extendicare has yet to face substantial governmental repercussions or accountability measures. Its continued growth is largely attributed to significant government funding and an aging population increasingly reliant on such services. Currently, Extendicare’s future expansion plans are pending approval from the Ministry of Long-Term Care.

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