Sabra Health Care REIT has agreed to an all-stock merger with Care Capital Properties in a $7.4 billion deal involving the real estate of 564 senior and healthcare-related facilities.
Sabra and Care Capital Properties are real estate investment trusts that specialize in buying the real estate of healthcare properties and leasing the facilities back to the operators.
The 564 properties include senior housing, skilled-nursing homes, behavioral health hospitals and transitional care facilities. The two companies own them across 43 states and Canada, the release said.
The management of Irvine, California-based Sabra, including CEO Rick Matros, Chief Financial Officer Harold Andrews and Chief Investment Officer Talya Nevo-Hacohen, will run the new combined company, according to a release. The merged REIT will continue under the Sabra name and its board of directors will be expanded to eight members and include Care Capital Properties CEO Raymond Lewis and two additional directors from the company.
Under the deal, which is expected to be completed in the third quarter, Care Capital Properties shareholders will receive 1.123 shares of Sabra common stock for each share of Care Capital common stock they own.
At closing, Sabra shareholders are expected to own about 41% and the former Care Capital shareholders are expected to own 59% of the combined company.