PACS Group: Eduro Acquisition Adds 34 Facilities Across Six States, Including Density in TX

Research evidence excerpt

PACS Group: Eduro Acquisition Adds 34 Facilities Across Six States, Including Density in TX

J P M O R G A N North America Equity Research

29 June 2026

PACS Group Overweight

PACS, PACS US

Eduro Acquisition Adds 34 Facilities Across Six States, Price (29 Jun 26):$39.94

Including Density in TX

Managed Care and Facilities

After the market close, PACS announced an agreement to acquire 34 SNFs from Benjamin Rossi AC

Eduro Healthcare for an undisclosed amount. According to the press release, the (1-212) 622-9603

transaction is set to occur in multiple tranches, with the majority of acquired benjamin.rossi@jpmorgan.com

facilities expected to close during 3Q26. We note that TX (22) represents the largest Lisa C. Gill

state by facility count, followed by MT (6), SD (3), and individual facilities in ND, (1-212) 622-6466

NM, and UT, which should result in PACS increasing its total SNF footprint to 357 lisa.c.gill@jpmorgan.com

facilities post-close, including an increase in overall share in TX to ~7.6% of total John Stansel, CFA

SNFs (vs ~1.5% pre-deal). We believe that the move is also in-line with the (1-212) 622-0083

john.stansel@jpmorgan.com

company’s previous commentary at the J.P. Morgan Healthcare Conference in

Cole Harris

January, where mgmt described a healthy and reactivated M&A pipeline and (1-212) 622-9068

indicated an appetite to increase M&A efforts after focusing on integration in 2025. cole.harris@jpmorgan.com

According to the latest data from CMS, Eduro’s facilities reported an occupancy J.P. Morgan Securities LLC

of 64.7% (vs PACS at 87.8% and overall industry at 79.5%), average overall star

rating of 2.29 (vs PACS at 2.96 and overall industry at 3.01), and average QM star

rating of 3.21 (vs PACS at 4.35 and overall industry at 3.66). While below industry