By Angela Chen
Ventas Inc. on Monday agreed to buy Ardent Medical Services,
Inc. for $1.75 billion in cash, and said it would spin off its
skilled nursing facilities into an independent real-estate
investment trust.
Ventas, a health-care real-estate investment trust, said it
plans to separate Ardent's hospital operations from its real estate
and sell them to a new entity owned by Ardent, in which Ventas has
a 9.9% stake.
"The addition of Ardent's platform, which includes high-quality
assets with significant market share in three key markets, and a
highly-regarded hospital management team, creates a strong avenue
for growth in the attractive hospital real-estate market," Ventas
Chief Executive Debra Cafaro said.
The deal is expected to add to Ventas' funds from operations by
8 to 10 cents in the first full year after the deal closes.
The new REIT will comprise 355 skilled nursing facilities and
other health care assets operated by 44 regional and local care
providers. Ventas President Raymond Lewis will serve as CEO of the
new independent, publicly traded REIT. Mr. Lewis said the
separation will allow for "significant consolidation
opportunities." The spinoff is expected to close in the second half
of the year.
Shares of Ventas were up about 2% in light premarket trading.
The stock is up around 2% this year through Thursday's close.
Write to Angela Chen at angela.chen@dowjones.com
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