Sun Healthcare Group, an Albuquerque-based long-term-care provider, said it has agreed to buy Retirement Care Associates and Contour Medical for a combined $328 million.
Atlanta-based Retirement Care recently bought 65% of the outstanding shares of Contour, a medical supply company in St. Petersburg, Fla., for $9.8 million. Retirement Care manages or owns 120 nursing homes and retirement centers in the Southeast.
Sun has agreed to exchange 0.66 of a share of newly issued common stock for each of Retirement Care's outstanding shares. Sun will then pay $8.50 per share in cash or stock for about 35% of Contour stock not owned by Retirement Care. In addition, it will assume both companies' outstanding debt.
Sun said it also has acquired nine nursing homes and assisted-living facilities from Clipper Affiliates in New Hampshire for
$12 million in cash plus the assumption of their leases for $6 million per year. The homes are expected to post combined annual revenues of $31 million for the year ended Dec. 31, 1996.
The transactions bring the total of Sun's long-term-care facilities in the U.S. to 380 and of its assisted-living facilities to 43.