KENNETT SQUARE, Pa. — Genesis HealthCare, a post-acute care provider based in Kennett Square, has agreed to purchase 24 skilled nursing facilities from Revera Inc., an owner-operator based in Canada, for $240 million. As part of the deal, Genesis will also acquire the operations of Premier Therapy, Revera’s contract rehabilitation business.
Under the agreement, Genesis will acquire the real estate of 20 of the 24 facilities and will enter into a long-term lease agreement with Health Care REIT (HCN) for the remaining properties. Genesis plans to finance the transaction utilizing a bridge loan from HCN and will subsequently refinance the bridge loan utilizing the HUD financing program or other traditional mortgage financing.
“This transaction supports Revera’s new strategic direction to focus the company on its core strengths in senior living, enabling investment in growth and innovation in its private-pay portfolio across Canada, the United States and the United Kingdom,” says Thomas G. Wellner, president and CEO of Revera. “We are pleased that our nursing and rehab team will continue to serve seniors under new ownership that shares our focus on quality care.”
The 24 facilities are located in the following states: eight in New Jersey, five in Vermont, three in Washington, two in Connecticut, two in Massachusetts and one each in Maryland, Virginia, New Hampshire and Rhode Island.
“The transaction is a good geographic fit for us, adding high-quality assets and density to our core markets in the Northeast, New Jersey and the state of Washington,” says George V. Hager Jr., Genesis’ CEO.
The 24 centers comprise 3,056 beds with approximately 3,800 full- and part-time employees. In 2014, aggregate revenue totaled approximately $280 million.
The transaction is expected to close by the end of 2015.