Omega Healthcare Investors Inc. (OHI) has agreed to buy Aviv
REIT Inc. (AVIV) in an all-stock deal that values the company at
about $1.65 billion, further consolidating the fragmented
skilled-nursing facility sector.
The deal will combine Omega's 562 skilled nursing facilities and
63,532 beds with Aviv's 312 properties and 26,520 beds.
Under the terms of the deal, Aviv shareholders will receive a
portion of Omega stock valued at $34.97 based on Thursday's closing
price. Aviv shareholders are expected to own about 30% of the
combined company once the deal closes.
Omega's chief executive, Taylor Pickett, will maintain his
position at the new company. Omega will add three new seats to its
board for Aviv directors, including its chief executive, Craig
Bernfield.
"The combination of Omega and Aviv creates the premier pure-play
skilled nursing facility REIT which, with the expertise and proven
track records of the combined management teams, will be
well-positioned to continue as the leading consolidator in the
large, highly fragmented SNF industry," Mr. Pickett said in a
statement Friday.
Among other recent deals in the sector, Kindred Healthcare Inc.
(KND) agreed to buy Gentiva Health Services Inc. (GTIV) for about
$720 million in cash and stock, after a five-month chase that
ultimately led Kindred to boost its offer by 50%.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com
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