OMERS PE Sells CBI Home Health to Extendicare for $570 Million

On Tuesday, OMERS Private Equity announced the sale of CBI Health’s home care business to Extendicare:

Transaction delivers value to OMERS members and positions company for expanded patient care
Toronto — OMERS Private Equity is pleased to announce that Paramed Inc. , a wholly-owned subsidiary of Extendicare Inc. (TSX: EXE) has signed an agreement to acquire CBI Health LP’s (“CBI Health”) home care business, which operates under CBI Home Health LP (“CBI Home Health”). The closing of the transaction is expected to be completed in the first quarter of 2026 pending final regulatory and related approvals.
Since its acquisition of CBI Health in 2011, OMERS Private Equity has worked closely with the leadership team to grow the company into one of the largest providers of integrated health care services, including physiotherapy, rehabilitation services and home care services.
CBI Home Health, the company’s home care division, has also experienced remarkable growth, expanding its team from 1,800 employees to 8,500 and delivering over 10 million hours of care annually across seven provinces.
“The investment that OMERS made in CBI Health really launched our direct buyout investment efforts almost 15 years ago. This transaction marks a successful milestone for OMERS Private Equity with a strong realization enabled by expanded patient care and clinical excellence.” said Mark Van Wart, Managing Director and Head of Healthcare, OMERS Private Equity. “CBI Health formed the basis of a 15-year successful track record in healthcare investing. We continue to look for ways to support CBI Health’s ongoing growth and delivery of high-quality healthcare outcomes for patients across Canada.”
OMERS will remain a majority owner of CBI Health, supporting ongoing growth, innovation and excellence in the physiotherapy and rehabilitation services sector.
“As CBI Health moves into the future, we are fortunate to have built a strong partnership with OMERS over the last 15 years and we are thankful that partnership will be continuing,” said Jon Hantho, CEO of CBI Health. “The sale of our home care business provides meaningful capital to support the ambitious growth plans we have in physiotherapy and rehabilitation services that is grounded in clinical excellence, exceptional client experience and the best team members.”
“OMERS Private Equity is unwavering in our commitment to delivering meaningful value and upholding the pension promise for our more than 640,000 plan members,” said Alexander Fraser, Executive Vice President & Global Head of Private Equity at OMERS. “Our collaboration with the exceptional leadership team at CBI Health demonstrates our intentional investment in enhanced healthcare services, coverage and outcomes in Canada. Extendicare is well positioned to continue the service excellence at CBI Home Health.”

When I first read the press release, I was confused as to why OMERS will remain majority owner of CBI Health but Don Peat of OMERS clarified it in an email exchange (my bad):

Extendicare purchased CBI Health LP’s (“CBI Health”) home care business, which operates under CBI Home Health LP (“CBI Home Health”). As the release says, OMERS will remain a majority owner of CBI Health, supporting ongoing growth, innovation and excellence in the physiotherapy and rehabilitation services sector.
So there's CBI Health and CBI Home Health.

Makes sense, Extendicare is in the home care business so they carved that out of CBI Home Health from CBI Health's other services.

For its part, Extendicare announced this deal on its website on November 19th, stating it will expand its home health care business by acquiring CBI Home Health for $570 million in cash consideration.

OMERS Private Equity acquired Toronto-based CBI Health Group from private equity firm Callisto Capital LP back in 2011.

At the time, the terms of the acquisition were not disclosed but if you read the press release carefully, this stands out:

CBI Home Health, the company’s home care division, has also experienced remarkable growth, expanding its team from 1,800 employees to 8,500 and delivering over 10 million hours of care annually across seven provinces.

So, carving out CBI Home Health and selling it to Extendicare for $517 million was a great way to realize value on this deal.

OMERS PE did its job to nurture and help grow the operations at CBI Health which it still owns (the physiotherapy and rehabilitation services sector) and realized great value for its members on this distribution.

This is also a great acquisition for Extenidcare and it will help solidify the company as Canada's leader in the home care business.

Interestingly, shares of Extendicare continue to make and all-time high, rallying on strong fundamentals: