A Medical Device Daily
Ventas (Louisville, Kentucky) reported that the executive committee of the University of Kentucky (UK; Lexington) board of trustees unanimously approved a transaction involving the leasing and operation of Good Samaritan Hospital (Lexington) owned by Ventas.
As part of the transaction, UK has the right to purchase the hospital from Ventas, and Ventas has the right to sell the hospital to UK, for a purchase price of $35 million. Ventas acquired the hospital in 2005 for $21 million. Prior to any such sale, UK will lease the facility from the company at its current annual cash rent of about $2.3 million, plus annual escalations.
Ventas is a healthcare real estate investment trust. Its portfolio of properties located in 43 states and two Canadian provinces includes seniors housing communities, skilled nursing facilities, hospitals and medical office and other properties.
In other dealmaking activity:
- Gentiva Health Services (Melville, New York), a provider of home health and related services, reported completing a transaction to expand its home health offerings in North Carolina, a Certificate of Need state. Gentiva acquired the home health operations of North Carolina Baptist Hospital (Winston-Salem, North Carolina), and it also acquired Baptist Hospital's respiratory and home medical equipment business.
The company indicated the total purchase price for the transaction is about $3.8 million in cash, the majority related to the acquired home health operations. No other terms were disclosed.
The company said the new business units, to operate as Gentiva Home Health and Gentiva Respiratory Services & HME , will complement Gentiva's existing market presence in North Carolina and leverage its patient and referral source relationships in the state.
The acquisition is expected to be accretive within its first year of operations.
- Home health nursing company Amedisys (Baton Rouge, Louisiana) reported that it has acquired the rights to operate a home health agency in Searcy, Arkansas.
"This transaction will give us the right to provide home health services to White County and seven surrounding counties in Arkansas, more than doubling the number of counties we can serve in this Permit of Approval state," said William Borne, CEO of Amedisys.
The acquisition is not expected to add materially to 2007 earnings. Terms of the acquisition were not disclosed.
- GEN Acquisition (GEN; New York) reported that it is extending its previously disclosed cash tender offers and consent solicitations with respect to any and all of the 8% senior subordinated notes, due 2013, and any and all of the 2.5% convertible senior subordinated debentures issued by Genesis HealthCare (GHC; Kennett Square, Pennsylvania). Terms of the tender offers are amended accordingly.
The new expiration date for both tender offers is 5 p.m., EDT, today, unless the tender offers are further extended or earlier terminated by GEN at its discretion.
The tender offers are being made in connection with the $1.7 billion agreement and plan of merger, dated Jan 15, as amended, among GEN, GHC and GEN's parent, FC-GEN Acquisition (Medical Device Daily, Jan. 17, 2007) that provides for the merger of GEN with and into GHC, with GHC being the surviving corporation in the merger.
The tender offers are being extended to coordinate the expiration of the tender offers with the closing of the acquisition (a condition to the tender offers). GEN said it has received tenders from holders of 100% of the 8% notes and 100% of the 2.5% notes.