Chicago-based Ventas has entered into an agreement to purchase Nationwide Health Properties in a deal valued at $7.4 billion in stock and debt. The acquisition will form the largest healthcare real-estate investment trust in the country.
Ventas to buy Nationwide Health Properties
Based in Newport Beach, Calif., Nationwide Health Properties' holdings include more than 200 skilled-nursing facilities as well as specialty hospitals and medical office buildings.
Under the terms of the deal, Nationwide Health Properties will receive a fixed ratio of 0.7866, or $44.99 per share, for a total stock value of $5.8 billion. Ventas will own roughly 65% of the company when the deal closes, according to a joint news release.
“With Ventas' successful track record of value-creating transactions and NHP's long-standing history of regional, asset-level acquisitions, taken together with one of the strongest balance sheets in the REIT industry, the combined company will have a unique opportunity for continued external growth,” Debra Cafaro, Ventas chairman and CEO, said in the release.
The transaction is expected to close in the third quarter.
Jerry Doctrow, managing director at Stifel Nicolaus & Co., said the deal has positive implications for the senior housing market, adding that it could likely be indicative of future acquisitions and consolidations. “Healthcare real estate is a very large category and more of it is likely to come into the public markets for a variety of reasons,” Doctrow said.
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