December 2, 2013

Senior Living M&A Activity Surges

seniors pic (2)According to data compiled by Levin and Associates and cited in a recent Senior Housing News article, “Healthcare mergers and acquisitions increased at a rate of 13% year over year with long-term care services mergers outpacing that average at a rate of 18%.”

In announcing the findings, Lisa Phillips, editor of Health Care M&A News, stated that long-term care was “among the dominant sectors.”  She went on to say, “We expect to see even more M&A activity in the fourth quarter.  Now that the Affordable Care Act is poised to take full effect in January, the uncertainty felt in many sectors is starting to dissipate.  Health systems that have made strategic acquisitions, such as physician medical groups, will now turn their attention to long-term care, home healthcare, and rehabilitation to fill out their care continuum requirements.”

A few recent mergers and acquisitions follow:

  • Omega Healthcare Investors announced it reached an agreement to purchase 56 nursing facilities from Memphis-based Ark Holding Company. This portfolio was known as the “Covenant Dove.”  The purchase price amount was $525 million, or approximately $95,500 per bed.  Omega plans to lease the facilities back to Ark Holding for a 50-year term.  The facilities are located in a dozen states, including South Carolina, Mississippi, Virginia, and Texas.  Source: Health Care M&A News
  • Ventas Inc. acquired a 26-property portfolio of independent living communities from Holiday Retirement for approximately $790 million, according to the REIT’s third-quarter earnings report.  Source: Senior Housing News
  • CNL Healthcare Properties announced an agreement to purchase 21 senior living communities at a cost of $457.3 million.  The portfolio includes 2,186 residential units, comprised of 664 independent living units; 1,366 assisted living units; and 156 memory care units.  According to a filing with the Securities and Exchange Commission, the communities span five states in the Pacific Northwest.  Source: Senior Housing News
  • Prestige Healthcare has acquired 15 senior care properties in Michigan from a local owner and operator.  LTC Properties funded the purchase with a loan of $141 million, which included $12 million in capital improvements and up to $3 million for short-term working capital.  The portfolio includes 2,092 licensed skilled nursing beds and 24 independent living units.  Source: Senior Housing News 
  • WholeLife Companies, a developer of luxury rental living communities, received approval for a $120 million bond from the Public Finance Authority (PFA) to build two WholeLife Traditions communities—one in Chattanooga, Tennessee, and the other in San Antonio, Texas.  The PFA unanimously approved financing the eligible costs of the acquisition, construction, installation, and equipping of these senior living communities.  Source: Business Wire
  • Kanye Anderson Real Estate Advisors bought a senior living community in Broward County, Florida, for about $62.8 million, as part of a larger portfolio deal, according to a local business journal.  Source: Senior Housing News
  • Aviv REIT, Inc. has acquired five post-acute and long-term care skilled nursing facilities in Ohio and Arkansas for $42.2 million.  Source: Senior Housing News

If you have questions about Healthcare M&A or Senior Living Services, contact the expert listed below at PYA, (800) 270-9629.

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