The Braff Group Facilitates Cardinal of Minnesota's Transition to The Cottages Group Ownership

Cardinal of Minnesota Transition to The Cottages Group

In a strategic move that enhances the reach and services offered to individuals with disabilities, Cardinal of Minnesota, based in Rochester, has been acquired by The Cottages Group. This deal marks a significant milestone for Cardinal, which has provided essential residential and in-home support services and employed around 450 individuals. This acquisition comes as longtime CEO Jack Priggen steps back from his role, ensuring the company is in capable hands.

The Cottages Group, with its headquarters in Burnsville, has been in operation for 24 years and shares a similar mission of providing care to individuals with disabilities. The acquisition is set to not only expand Cardinal’s presence in Minnesota but also increase its workforce to approximately 700 employees, effectively doubling its output in the market.

Brittany Eriksmoen, CEO of The Cottages Group, addressed the primary objective behind the transition: minimal disruption. "Our intention is to make as few changes as possible. We plan to merge the two companies while retaining all the existing employees and maintaining the Cardinal name," she expressed. This approach is designed to facilitate a seamless transition for both staff and those they serve.

Cardinal’s operational base will remain at 3008 Wellner Dr. NE, a facility constructed back in 2008, in Rochester. All 45 care residences that assist individuals with developmental disabilities and related challenges will continue operating effectively in their respective locations across Rochester, Winona, and several other cities in Minnesota like Austin and Bemidji. The Cottages Group, already established in locations across St. Cloud and Dakota County, now expands further south into Minnesota.

Reflecting on the acquisition, Jack Priggen stated, "The alignment between our companies, both in terms of mission and geographical footprint, is very reassuring. I couldn't be happier knowing that the company I built over the last 30 years is being taken over by an organization that shares our values and vision for the future."

The Braff Group served as the exclusive financial advisor for Cardinal of Minnesota to facilitate the acquisition and ensure the process was executed smoothly. Steve Garbon, managing director at The Braff Group, commented on the deal's significance. "It was an honor to partner with the Priggen family. Jack’s journey from an entrepreneurial start to establishing Cardinal as a trusted name in care services is inspiring. It underscores the rewarding nature of working alongside dedicated business owners."

Since its establishment in 1998, The Braff Group has specialized in healthcare advisory services, focusing on various sectors including behavioral health, home health, and hospice care, contributing to over 385 completed transactions. The firm prides itself on being a leader in the healthcare mergers and acquisitions space, consistently recognized among the top advisory groups in this field.

As the landscape of care services continues to evolve, both Cardinal of Minnesota and The Cottages Group are poised for growth while continuing to uphold their commitment to the individuals they serve. Ensuring continuity in staff and services will be critical during this transition, and early indications suggest that the merged organization is likely to maintain its high standards of care.

For those invested in the outcomes of this merger, following the developments at The Cottages Group and Cardinal of Minnesota is essential as they navigate their new chapter together in the healthcare sector.